The ₱200 daily wage increase for private sector workers recently approved by the House of Representatives may be well-intentioned, but it risks repeating a cycle of short-term relief and long-term damage to the Philippine economy.

The Chinese Filipino Business Club, Inc. (CFBCI), one of the prominent organizations in the Chinese-Filipino community, argues that a ₱200 across-the-board increase will not only burden large corporations but will also spell harm to micro, small, and medium enterprises (MSMEs) the hardest.

These businesses form the backbone of the Philippine economy, yet they often operate with narrow margins. A significant wage hike like this will force many of them to either dismiss employees to stay afloat or pass the additional cost onto consumers, driving up the prices of basic goods and services. Eventually, wage earners may find that their higher pay is offset by rising inflation and job insecurity.

Instead of implementing another sweeping increase, we should allow the Regional Tripartite Wages and Productivity Board composed of representatives from labor, employers, and relevant government agencies to assess the economic realities of each sector and region and take a balanced, evidence-based approach in crafting wage policies that are fair yet realistic.

We must avoid blasting another prematurely legislated wage hike which does not target the root causes of poverty and may even exacerbate the struggles of the very people we intend to help. This one-size-fits-all solution from Congress risks destabilizing local economies without truly addressing inequality.

As a business organization and a social welfare advocate, we strongly believe that the government can play a more proactive role in alleviating poverty without relying solely on wage hikes. For example, the rice subsidy program that offers rice at ₱20 per kilo can directly reduce the cost of living without hurting business operations.

Similar programs could be implemented, including expanded access to Kadiwa rolling stores that bring affordable vegetables and household items to low-income barangays. This approach stretches the value of every peso a worker earns.

Moreover, targeted government subsidies, transportation fare discounts, utility bill support, and food vouchers could provide additional safety nets without compromising the financial health of small businesses. These interventions are more sustainable and can be adjusted depending on budget health and community needs.

In conclusion, helping Filipinos achieve a dignified life requires creative, multi-layered solutions — not quick fixes that have failed in the past. Employers, government, and community groups must work together to craft policies that address both economic survival and long-term prosperity. A ₱200 wage hike may feel like progress, but we owe it to our workforce to offer smarter, more sustainable solutions.