DUBAI: An increase in the minimum wage could have wider, negative implications that will would impact even those who will not benefit from the additional pay, the Philippines’ trade and industry secretary said on Wednesday.
“The reality is not all [Filipino workers] are wage earners,” trade chief Ramon Lopez commented during an economic briefing at Malacañan Palace.
“If we increase wages, the costs will increase which can pressure prices to go up. And of course, those who will be hit are not only the wage earners, but everyone else who did not benefit from the wage hike. They will also be affected.”
“The more sustaining solution for wage increases would be more jobs to be created and more investments to come in.”
There had been calls for the government to review current wages because of higher inflation – due to costlier oil prices and the implementation of a tax law that hit sugar and tobacco product prices – during recent months. Prices of consumer goods rose 4.6 percent last month, slightly higher than the 4.5 percent recorded in April but lower than the 4.9 percent government forecast.
Some legislators are planning to file bills aimed at increasing minimum wages across the country when Congress – the country’s legislative body – resumes regular sessions on July 23.
“Inflation (in May) was caused by oil prices and a shortage in rice,” Lopez said, while prices of sugar and tobacco products increased because of the higher tariffs imposed on them under the Tax Reform for Acceleration and Inclusion (TRAIN) law which came into force on Jan. 1.
“The shortage of rice however has been addressed with the government-to-government importation we undertook, and shipments are now being unloaded in various ports around the country to address local supply.”
Lopez, however, did not discount the possibility that regional tripartite wage boards – which formulate and review policies on regional wages – could implement additional daily salaries, although such moves must be based on the prevailing economic conditions in the specific regions granting these increases.
“There can be consideration because of inflation, so if you ask me there could be a minimal adjustment but that should not be more than what is necessary because it would really create a strong pressure on inflation,” he said. “Whatever inflation is felt in the region that could be a basis for the adjustment.”
President Rodrigo Duterte last month ordered the Department of Labor and Employment to convene regional tripartite wage boards to study the possibility of adjusting minimum wages to mitigate the effects of rising consumer prices, the peso depreciation and the implementation of the TRAIN Law. Duterte also directed trade officials to tighten the monitoring of prices of basic goods and commodities to guard against profiteering.
“But if we are successful in maintaining industrial peace, maintaining rule of law, peace and order, no corruption, good business environment, investments would come in and that will drive up wages,” Lopez said. “We have to have investments and job-creation activities so that wages and income will go up naturally because of the supply and demand for labor. That is what we should strive for.”
Philippines’ trade chief negative to legislated wage hike for Filipino workers
Philippines’ trade chief negative to legislated wage hike for Filipino workers
- “The more sustaining solution for wage increases would be more jobs to be created and more investments to come in”
- President Rodrigo Duterte last month ordered the Department of Labor and Employment to convene regional tripartite wage boards to study the possibility of adjusting minimum wages
Saudi Arabia to simplify business registration with new law taking effect
RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3.
Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported.
The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added.
The changes comes as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce.
The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030.
Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”
He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.”
Existing subsidiary registers will have a five-year grace period to comply with the new regulations.
Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits.
The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities.
Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names.
The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment.
In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030.
Saudia launches direct flights to Bali
RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.
The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner.
Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance.
The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.
The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs.
Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated.
The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services.
Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes.
As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents.
The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021.
With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world.
According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase.
This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide.
Middle East airlines witness 3.3% passenger demand growth in February: IATA
RIYADH: Airlines operating in the Middle East recorded a 3.3 percent year-on-year increase in passenger demand in February, with total flight capacity rising 1.3 percent during the same period, an industry report showed.
The latest data from the International Air Transport Association revealed global passenger demand, both domestic and international, increased by 2.6 percent over the second month of the year.
This growth comes as many Middle Eastern countries focus on boosting the aviation sector to help diversify their economies away from oil dependency, with Saudi Arabia seeking to triple passenger numbers by 2030 compared to 2019 levels.
Commenting on the latest report, Willie Walsh, director general of IATA, said: “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April.”
The association added that the total load factor among carriers in the Middle East region stood at 82 percent in February, representing a rise of 1.6 percentage points compared to the same month in 2024.
The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers.
A high load factor signifies that an airline has sold most of its available seats.
IATA also reported that carriers in the Middle East handled 9.4 percent of global passengers in February, a figure that remained unchanged from January.
Earlier this month, a report by consulting management firm Oliver Wyman stated that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035, reaching 2,557 aircraft.
It added that this growth rate in the Middle East is nearly double the annual global growth rate, which is projected at 2.8 percent during the same period.
Affirming the progress of the aviation sector in the Middle East, Saudi Arabia is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies later this year, with the aim of flying to 100 countries by 2030.
In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft.
In the same month, the company announced plans to order wide-body aircraft capable of seating more than 300 passengers in 2025.
According to IATA, international passenger demand growth increased by 5.6 percent in February compared to the same period in the previous year.
However, international passenger demand growth was down compared to January, which witnessed a 12.3 percent rise.
The report added that global domestic demand declined by 1.9 percent year on year in February.
Africa witnessed a 6.8 percent rise in overall passenger demand, including both domestic and international, followed by Latin America at 4.6 percent, Europe at 4.3 percent, and Asia-Pacific at 4.2 percent.
Air carriers operating in North America experienced a 3.2 percent decline in passenger demand.
International passenger demand
Airlines operating in the Asia-Pacific region led international passenger demand globally, marking a 9.5 percent growth in February compared to the same month in 2024.
The total capacity of airlines in the APAC region rose by 8.3 percent year on year, while the load factor stood at 85.7 percent.
APAC airlines handled 33.5 percent of global passengers in February, followed by Europe at 26.7 percent and North America at 22.9 percent.
The report further indicated that international passenger demand among Middle East airlines increased by 3.1 percent in February compared to the same month in the previous year.
The association also noted that the capacity of airlines in the Middle East region increased by 1.3 percent, while the load factor stood at 81.9 percent in February, representing a rise of 1.4 percentage points compared to the same month in 2023.
According to IATA, international passenger demand among European air carriers rose by 5.7 percent year on year in February, while capacity increased by 4.9 percent during the same period.
North American air carriers saw a 1.5 percent decline in international passenger demand growth, with capacity also decreasing by 3.2 percent.
International passenger demand growth among Latin American airlines grew by 6.7 percent year on year in February, while capacity climbed by 9.9 percent.
African airlines saw demand growth of 6.7 percent among international travelers.
The capacity of these carriers also rose by 4 percent in February compared to the same month in 2024.
Air cargo demand growth
In a separate report, IATA revealed that air cargo demand declined slightly by 0.1 percent in February compared to the same period in the previous year, marking the first decline since mid-2023.
Overall, cargo capacity, measured in available cargo tonne-km, decreased marginally by 0.4 percent year on year in February.
The report added that international cargo capacity edged up by 1.1 percent over the month.
“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary — a leap year that was also boosted by Chinese New Year traffic, sea lane closures, and a boom in e-commerce,” said Walsh.
He added: “Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.”
Airlines operating in the APAC region drove cargo demand growth in February.
According to IATA, cargo demand growth among APAC airlines increased by 5.1 percent year-on-year, while capacity rose by 2.7 percent during the same period.
Air carriers in the Middle East region witnessed an 11.9 percent year-on-year decrease in air cargo demand in February, the slowest among the regions.
The capacity of air carriers in the Middle East also decreased by 4 percent in February.
“North American carriers saw a 0.4 percent year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5 percent year-on-year,” said IATA.
The air cargo demand growth among European airlines dropped marginally by 0.1 percent in February compared to the same month in 2024, while capacity slightly edged down by 0.2 percent.
Air carriers operating in the Latin American region witnessed a 6 percent year on year cargo demand growth in February, the strongest rise among all regions. The capacity of these airlines also rose by 7.6 percent during the same period.
“African airlines saw a 5.7 percent year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6 percent year-on-year,” added IATA.
Looking at trade indicators, IATA said that the industrial production index rose 3.2 percent year-on-year in February, the highest growth in two years, while world trade expanded by 5 percent.
In February, the Purchasing Managers’ Index for global manufacturing output stood at 51.5, indicating growth.
The PMI for new export orders rose slightly to 49.6 from the previous month, remaining just shy of the 50-mark, which is the growth threshold.
The report added that jet fuel prices averaged $94.6 per barrel in February, representing a 2.1 percent decline compared to January.
Saudi firms announce 2024 financial results amid Eid trading break
RIYADH: Multiple companies have released their financial results for 2024 despite the Saudi market remaining closed for trading due to the Eid Al-Fitr holiday, which lasts until April 2.
Red Sea International Co. reported a turnaround in profitability, announcing a net profit of SR4 million ($1.07 million), compared to a net loss of SR23.1 million in 2023.
In a statement on Tadawul, the organization attributed the improvement to the full-year impact of its First Fix acquisition, along with stronger revenues and performance. Operating profit surged to SR70 million from SR6 million in the previous year.
Raydan Food Co. posted a net loss of SR73.1 million in 2024, widening from SR30.8 million in 2023, a 136.6 percent increase.
The company attributed the losses to declining sales, lower revenues from contracts and franchises, higher selling and marketing expenses, and impairment costs related to right-of-use assets and land.
Foreign currency valuation adjustments and investment impairments also contributed to the decline. Sales fell 12.4 percent to SR155.3 million due to weaker branch performance and lower contract revenues.
Osool and Bakheet Investment Co. remained profitable despite a drop in net income. The firm’s profits dropped to SR19.8 million from SR25.4 million in 2023, largely due to a 24 percent fall in total revenues.
A 31 percent reduction in expenses and a 55 percent decrease in financing costs did help offset the impact. Other income surged 152 percent to SR4.2 million, though zakat expenses rose 58 percent to SR3.8 million.
Maharah Human Resources Co. reported a robust earnings gain, with net profits rising 27.1 percent to SR127.4 million, driven by an 18 percent revenue increase and a 6 percent improvement in gross profit, supported by corporate services sector growth.
The organization benefited from an SR20 million reduction in expected credit losses and an SR11 million boost in other operating income, mainly from increased government incentives for Saudi employment.
However, higher investments in human capital pushed general and administrative expenses up by SR3.5 million, while financing costs rose by SR4 million.
Additionally, profits from associate companies, including Care Shield Holding Co. and Saudi Medical Systems Co., fell 30 percent, amounting to an SR12.2 million decline, due to weaker results from Care Shield Holding Co. and the absence of Saudi Medical Systems Co.’s financial data for the last six months of 2024.
Oil Updates — crude extends climb on supply fears, trade war concerns cap gains
SINGAPORE: Oil prices inched higher on Tuesday after threats by US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran, though worries about the impact of a trade war on global growth capped gains.
Brent futures rose 21 cents, or 0.3 percent, to $74.98 a barrel at 9:45 a.m. Saudi time, while US West Texas Intermediate crude futures climbed 22 cents, or 0.3 percent, to $71.70.
The contracts settled at five-week highs a day earlier.
“Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies,” said Yeap Jun Rong, market strategist at IG.
However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.
A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.
Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump’s threats.
After news of Trump’s threats initially boosted prices on Monday, traders told Reuters they viewed the president’s warnings to Russia, at least, as a bluff.
Trump, on Sunday, told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25 percent to 50 percent on Russian oil buyers if Moscow tries to block efforts to end the war in Ukraine.
Tariffs on buyers of oil from Russia, the world’s second largest oil exporter, would disrupt global supply and hurt Moscow’s biggest customers, China and India.
Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.
“For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries,” said ING commodities strategists on Tuesday.
The market will be watching for weekly inventory data from US industry group the American Petroleum Institute later on Tuesday, ahead of official statistics from the Energy Information Administration on Wednesday.
Five analysts surveyed by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to March 28.
