AGP Executive Report

Philippine Airlines joins oneworld: PAL will become the alliance’s 16th member, adding 31 destinations and boosting Asia-Pacific connectivity after its post-COVID turnaround and A350-1000 long-haul performance. NAIA premium lounge expansion: Seven airlines are now co-sharing the First Meridian Lounge at NAIA Terminal 3, aiming to improve passenger experience with a common-use setup. Inflation & rates watch: May inflation eased to 6.8% but core inflation rose to 4.1%, keeping another BSP rate hike “on the table” for economists. Power reliability probe: Senate President pro tempore Sherwin Gatchalian filed a resolution into NGCP’s frequent red/yellow alerts and Luzon/Visayas power interruptions, warning El Niño could worsen supply gaps. Senate leadership legality dispute: Loren Legarda questioned the constitutionality of Senate officer changes, arguing only 12 senators were present for votes. Wealth management push: EastWest expands Priority Banking wealth services as AUM hits P120B and targets more Priority centers. SME lending boost: Discovery Capital secured a UnionBank credit line to expand non-collateralized working capital loans for small businesses. Health support rollout: PhilHealth says 2,026 GAMOT facilities can provide up to P20,000 in free essential medicines yearly. Agri exports milestone: First commercial shipment of fresh Philippine carabao mangoes arrives in Canada via PAL Cargo, opening a new export pathway. Investment promotion update: BOI-approved investments fell 48% to P58.2B in Q1 as both foreign and local commitments declined. Solar quality regulation: DTI proposes mandatory Philippine Standards safety/quality certification for solar components to prevent substandard imports. Digital payments momentum: BancNet plans future-ready upgrades for cross-border interoperability and mobile-based payments after 2025 transaction volumes more than doubled. Energy security planning: DOE explores funding options for a strategic oil reserve without drawing from the national budget. Wildlife enforcement: DENR recovered 53 wildlife species in Sarangani, including vulnerable white-bellied sea eagles, after intelligence-led operations. Sustainability at community level: GSMI’s BOTEful Philippines hit 70,000 used bottles collected in Palawan in six months, supporting reuse and recycling.

Impeachment Watch: Bicol Saro Rep. Terry Ridon said House prosecutors’ confidence in convicting VP Sara Duterte rests on evidence, not Senate leadership changes, as the Senate leadership fight continues. Senate Gridlock: Rival claims over Senate leadership after the June 3 reorganization are still disrupting work, with Malacañang recognizing Sherwin Gatchalian while Alan Peter Cayetano contests. Anti-Graft Cases: A Bulacan court ordered the arrest of contractor Pacifico “Curlee” Discaya II and 10 others in a ₱53.9M flood-control malversation case, while the Senate is coordinating his transfer to the PNP. Infrastructure & Mobility: President Marcos inspected Maharlika Highway rehab in Samar, targeting faster travel times, while Cebu Province launched “Tabang Pambyahe” to subsidize bus services. Local Economy & Services: Cebu City opened the Ecostation to cut landfill-bound waste by up to 15 tons daily, and is considering an ordinance for real-time pharmacy medicine inventory access. Food & Agriculture: Central Luzon groups launched the Save the Rice Granary Movement, calling for a two-year moratorium on land conversion permits to protect food security. Trade & Travel: Guam and CNMI renewed their push to include the Philippines in a visa waiver program to boost regional tourism and connectivity. Digital & Consumer Safety: A new scam report says Filipinos are being targeted frequently, with social media and AI-driven fraud tactics rising.

Senate/Rule of Law: Acting Senate President Sherwin Gatchalian said DILG has coordinated with the Senate to transfer detained contractor Curlee Discaya to the PNP on Monday after a local court order. Inflation & Livelihoods: Malacañang pointed to May inflation easing to 6.8% (from 7.2% in April) as Uplift measures start to bite, while warning risks remain from oil and possible El Niño. Infrastructure & Growth: President Marcos inspected Maharlika Highway rehabilitation in Samar, targeting travel time between Tacloban and Catbalogan to drop from 3 hours to 45 minutes by August, with a rehab cost of at least P16B. Social Security: SSS said new retirement, disability, and survivor pensioners won’t get the 2026 pension increase until September; only those on record as of May 31 get the June rollout. Business Climate: DTI reported business name registrations rose 19.69% in May to 79,165, led by wholesale/retail and accommodation/food. Trade & Food Security: AmCham warned expanded pork import quota rules could disrupt supply chains and retail prices. Energy Transition: A renewable energy sector outlook projects 8.06% CAGR growth to 2034, driven by the DOE’s Green Energy Auction Program. Housing: DHSUD and Pag-IBIG turned over Lipa houses under Expanded 4PH, continuing the push for accessible homeownership.

Senate Quorum Challenge: A high school teacher asked the Supreme Court to uphold the legality of the June 3 Senate session where quorum was declared with 12 senators, citing the Avelino v. Cuenco ruling and arguing the chamber’s actions should stand. Power Bills Scrutiny: Lawmakers led by Chel Diokno urged Meralco to “clearly and intelligibly” explain its charges and pushed for a congressional probe into electricity subsidies and fees that hit consumers. Inflation Watch: Philippine inflation eased to 6.8% in May, but economists still expect a rate hike as price pressures remain sticky. Pension Update: SSS will not extend the June pension increase to new retirement/disability/survivor pensioners; eligibility is tied to the May 31 cutoff, with later beneficiaries getting the hike in September. Housing Permits in Cebu: DHSUD-7 denied claims of widespread delays in Licenses to Sell, saying only two pending applications are in late processing and won’t materially affect supply. Water Operations in Bulacan: Metro Pacific Water was named interim operator for San Jose del Monte’s water district after service interruptions under PrimeWater. Energy & Industry: First Gen/EDC plans a P25B geothermal upgrade in Negros to boost long-term steam supply. Transport Aid: DSWD cash assistance reached thousands of PUJ and delivery riders in Calabarzon and Mimaropa to cushion fuel-price impacts. Environment & Enforcement: DENR ordered closure of a Misamis Oriental steel plant after radioactive materials were found in scrap inputs; meanwhile, groups protested tree-cutting for the SALEX Southern Access Link in Manila. Digital & Consumer Safety: Globe trained 440+ youth in Iloilo and Negros on cybersecurity and online safety; NBI also raided an alleged 20-year illegal online collection agency in Quezon City, arresting 26.

Public Transport Relief: DSWD said 206,633 PUV drivers in Calabarzon (including tricycle, jeepney and delivery riders) received ₱5,000 each as of June 2 to cushion fuel-price shocks, with payouts continuing and beneficiaries told to follow official schedules. More Cash Aid: In Mimaropa, DSWD disbursed ₱6.845M to 1,369 service delivery riders (90.48% of target) under the ₱5,000 emergency support tied to the Middle East-driven energy emergency. Senate Quorum Fight: The Integrated Bar of the Philippines backed the June 3 Senate session as “lawful and valid,” citing the Avelino v. Cuenco doctrine that 12 senators can form quorum when full attendance isn’t possible—amid an ongoing leadership standoff. Blue Ribbon Clash: Sen. Alan Peter Cayetano pushed ahead with a blue ribbon hearing on flood control despite the dispute, warning Senate staff that blocking resource persons could lead to punishment. Flood Control Graft Case: The Ombudsman filed graft and malversation raps over a ₱53.9M Bulacan flood control project against contractor couple Pacifico and Cezarah Discaya and several DPWH officials. Cybercrime Crackdown: The NBI raided an alleged illegal online collection agency in Quezon City, arresting 26 people tied to intimidation and alleged double-charging. Energy & Inflation Watch: Foreign banks expect Philippine inflation to rise further in May, leaving room for more BSP rate hikes. Energy Security Push: DENR partnered with The Ocean Cleanup to remove floating plastic waste from the Pasig River using interception systems and producer accountability. Aviation Update: AirAsia Group denied reports of grounding, saying flights remain operational while it settles CAAP-related obligations. Food Security in Cities: Manila relaunched the Luneta Urban Garden to boost urban farming and food security through tech-enabled agriculture. UN Security Council: The Philippines lost its UNSC bid to Kyrgyzstan, with the vote reflecting international criticism over human rights concerns.

Senate Power Struggle: The Senate’s blue ribbon flood-control hearing was suspended after leadership chaos, with Palace saying President Marcos may call a special session if grounds are valid—while Senate staff were told to leave early on June 4 for safety. Aviation Under Pressure: AirAsia Philippines denied reports of grounding over unpaid airport fees, saying flights remain “fully operational” as CAAP set a June 6 deadline. Energy Watch: Marcos ordered energy officials to fix Visayas power and grid issues ASAP after repeated alerts, while DOE filed a civil case to collect a P1.18B performance bond from Batangas Rep. Leandro Leviste’s solar unit. Health & Consumer Safety: PhilHealth warned of fake SMS and an unauthorized site phishing member data. Digital Governance: The House approved on final reading an anti-false information bill aimed at deliberate online deception. Business & Markets: Jollibee set its 2026 annual stockholders’ meeting for June 26 (virtual). Trade & Labor Risk: China reportedly mulls curbs and a crackdown on undocumented Filipinos after the Sanjia Steel case, raising fears of retaliation. Food Security: El Niño-linked heat is already hurting crop planting across Asia, pushing up rice and wheat concerns. Local Economy & Services: DSWD launched a campaign to bring 4Ps senior high dropouts back to school.

Senate Power Struggle: The Senate’s blue ribbon committee hearing on the flood control scandal was suspended after a leadership clash, with Senate staff told to work from home on June 4—while Sen. Alan Peter Cayetano insists hearings should proceed. House Passes KALINGA: The House approved on final reading the KALINGA Act, creating a permanent emergency response framework to cushion fuel-price and energy shocks. Disinformation Law: Lawmakers also passed an anti-disinformation bill on third reading, with penalties for willful false information meant to cause harm or threaten national security. Aviation Costs Hit AirAsia: CAAP gave AirAsia Philippines until June 6 to settle unpaid airport charges of about ₱271.9M; CAAP says operations remain normal. Trade Pressure From US: The US USTR moved to impose new Section 301 forced-labor tariffs on 60 economies, including the Philippines, raising compliance risks for exporters. Markets & Currency: The peso slipped on renewed US tariff worries, while Philippine stocks rose for a third straight day, led by ICTSI. Energy & Climate: Environmental groups urged faster renewable transition amid warnings of a possible Super El Niño. Digital Payments: Google Pay adoption in the Philippines remains slow despite Android dominance, with Visa noting transaction share still below 10%.

Senate Gridlock Hits Economy: President Ferdinand Marcos Jr. urged senators to “get back to work” after a two-day boycott stalled sessions, warning legislative paralysis could delay laws and relief measures amid the oil-price shock. Freedom of Information Push: The House approved on final reading the Freedom of Information Act (HB 9397) with 284 votes, moving it to bicam for reconciliation with the Senate version. Senate Leadership Shake-up: Win Gatchalian was elected Senate president pro tempore as the minority helped form quorum while the majority skipped sessions. SME Financing Boost: Discovery Capital Finance secured a strategic credit facility with UnionBank to expand non-collateral working capital for SMEs nationwide. Agriculture Supply Chain: DA said delayed farm-to-market road projects will resume procurement and start bidding in August after costing adjustments. Food Security Enforcement: Customs inspected and seized PHP35.4M worth of allegedly smuggled onions and garlic in Nueva Ecija. Housing for OFWs Under Strain: Cebu and other areas face tighter options as DHSUD audits backlogs of licenses to sell, delaying pre-selling projects. Labor Compliance: DOLE and RTWPB-XI urged Davao firms to submit 2025 Annual Establishment Report on Wages by Aug. 31, 2026. Insurance Outlook: AM Best kept a stable outlook on the Philippines non-life insurance segment, citing infrastructure and growth prospects but flagging weather volatility.

Energy & FX Watch: MUFG warns the peso could slide to ₱64.5 per US dollar if the Middle East war re-escalates and oil prices jump, with “super” El Niño and a hawkish Fed adding pressure. Growth Outlook: AMRO cut the Philippines’ 2026 growth forecast to 4.1% (from 5.3%) and 2027 to 5.5% (from 5.8%), citing energy shock and weaker consumption. Banking Stress: Philippine banks’ NPL ratio hit an eight-month high in April as soured loans rose, signaling early strain from higher costs and uncertainty. Public Finance: National government debt dipped to ₱18.47T in April as domestic repayments offset peso depreciation. Digital Economy Push: DTI says the ASEAN-wide Digital Economy Framework Agreement could boost the Philippines’ digital economy value and investment, building on PSA data showing ₱2.74T in 2025 output. Power Supply: NGCP flagged possible rotating brownouts in Visayas due to offline coal plants, with a yellow alert in place. Policy & Governance: House approved on final reading the Right to Information bill, moving it to bicam; Malacañang warned Senate turmoil could delay priority measures. Border System Fee: BI clarified the proposed CAISS traveler fee is still under study and not yet approved. Business Moves: EastWest and Visa launched enhanced priority banking for HNW clients; MerryMart approved delisting ahead of a DoubleDragon takeover; Del Monte Pacific filed a restructuring plan after a US unit bankruptcy.

Senate Gridlock Deepens: The Senate remains deadlocked after Sen. Jinggoy Estrada’s arrest, with the majority bloc skipping sessions and analysts warning the stand-off could stall legislation, delay appointments, and complicate VP Sara Duterte’s impeachment timeline. Border Tech Fee Unclear: Malacañang says a proposed P240 immigration fee for BI’s CAISS modernization is still “under study” and may not be implemented, pending transparency and stakeholder consultations. Infrastructure vs Environment: Protesters renewed calls to halt a proposed P26.648B waste-to-energy facility at Smokey Mountain, arguing alleged environmental violations could worsen health and displacement risks for nearby communities. Corporate Restructuring: Del Monte Pacific filed a US$1.2B restructuring plan with the PSE after negative stockholders’ equity tied to its US unit’s Chapter 11 bankruptcy. Energy, Trade, and Finance: Green GSM secured a P2B credit facility from PNB to expand all-electric ride-hailing, while DHL Express and ASEAN-BAC signed an MoU to boost ASEAN trade facilitation and MSME competitiveness. Maritime Tensions: Taiwan urged Manila and Tokyo not to infringe on its EEZ rights as Japan-Philippines maritime delimitation talks proceed amid regional pushback. Health Policy Push: A House bill seeks to exempt essential medicines from 12% VAT, arguing common drugs like paracetamol and antibiotics remain taxable.

Senate Power Struggle: Senate President Alan Peter Cayetano told the minority bloc to “let the Senate go quiet” after Sen. Jinggoy Estrada’s arrest, as economists warn institutional credibility is now a bigger drag on the economy than external shocks. Inflation & Rates: The BSP said it may tighten more if inflation expectations stick, while foreign banks are more hawkish than the central bank, warning May price pressures could run hotter. Fuel Relief + Oil Buffer Plan: A major fuel price rollback is set this week, and the government is also pushing strategic petroleum reserves to blunt future Middle East-linked supply shocks. Public Finance: The Treasury fully awarded ₱40B in T-bills as investors demanded higher yields amid inflation and peso concerns. Trade & Manufacturing: Iran-war cost shocks are hitting European factories, while Philippine factory activity is returning to growth; Cebu exports also held up despite a weak peso. Philippines–Vietnam Push: Marcos urged deeper Vietnam investment and both countries reaffirmed support for the 2016 South China Sea arbitral ruling, aiming to elevate ties to an enhanced strategic partnership. Local Governance & Costs: Cebu approved an FOI ordinance for faster public access to records, while Cebu City is reassessing waste disposal after a deadly landfill collapse drove up hauling costs. Business Moves: MinebeaMitsumi plans a P25B Cebu expansion; RCBC and EzyRemit are expanding digital remittances for Filipinos in Australia. Transport Oversight: LTFRB suspended Victory Liner buses after a Benguet crash and issued a show-cause order.

Philippines–Vietnam Strategic Upgrade: President Marcos and Vietnamese leader To Lam sealed a stronger partnership with new MOUs on defense cooperation, digital transformation, tourism, and education, aiming to deepen maritime security and trade while boosting information-sharing against transnational crime. ADB Infrastructure Push: The ADB is preparing a Vietnam pipeline of about US$5–6 billion for 2026-2029, with roughly US$4.5 billion in financing focused on transport, energy, urban development, and competitiveness reforms. Fuel Cost Relief: The DOE announced major pump price rollbacks effective June 2—diesel down at least P9.26/liter, gasoline down at least P4.76/liter, and kerosene down at least P10.86/liter—while LPG is set to rise about P3.41/kg. Manufacturing Turns Up, Jobs Lag: S&P Global said the Philippines’ manufacturing PMI returned to expansion in May (50.8), driven by output and new orders, but exports stayed weak and employment pressures persisted. Minimum Wage Hike (Eastern Visayas): The final tranche of the 2025 wage order took effect June 1, lifting daily minimum pay to P470 for non-agri and P440 for smaller establishments, cottage/handicraft, and agriculture. Digital Payments for Government Fees: Landbank will waive QRPh convenience fees for eligible person-to-government payments from June 1 to Dec. 31, 2026, covering services like taxes, permits, and clearances. Impeachment Timeline: The Senate set VP Sara Duterte’s impeachment trial calendar for July 6, as her camp faces a formal response deadline. Transport Safety Move: LTFRB suspended 26 Victory Liner buses after a Benguet crash, pending investigation and compliance with a show-cause order. Water Security Planning: Manila Water said it is relying more on alternative sources as Angat Dam levels dip below minimum operating level, ahead of the June 8 school opening. Right to Information Fight: The House vowed to push its FOI bill version in bicameral talks, setting up a potential showdown over how the constitutional right to information will be implemented.

Inflation Watch: BSP estimates May inflation may have quickened to as high as 7.9%, driven by higher rice, vegetables and meat prices, a weaker peso, and Middle East-linked energy and shipping shocks. Markets: The PSEi stayed under pressure after slipping below 5,800, with investors wary of inflation, interest-rate moves, and US-Iran geopolitical risk. Public Finance: NG gross borrowings fell 66.6% in April to P130.19B as domestic debt issuance eased. Infrastructure Bottlenecks: ADB flags right-of-way acquisition delays in densely populated areas as a key drag on transport project timelines. Digital Integration: Asean officials wrapped talks on the Asean Digital Economy Framework Agreement, aiming for a safer, more seamless regional digital economy. Green Procurement: DBM expanded its eMarketplace green program by adding EVs and cloud services with discounts for government agencies. Business & Investment: Marcos’ upgraded partnership with Japan is seen boosting investment appeal, but structural gaps remain. Defense & Maritime: AFP and US completed maritime drills near Bajo de Masinloc as China continued patrol claims around Huangyan Dao. Bilateral Ties: Vietnam President To Lam begins a two-day state visit to deepen trade, defense, and maritime cooperation ahead of the 50th anniversary of relations. Labor Enforcement: DOLE plans to strengthen labor inspection capacity, with lawmakers backing more inspectors and training support. Corporate Updates: DigiPlus expects a steadier Q2 as it prepares to relaunch Brazil operations and expand into South Africa. Property: Arthaland targets about P12B in sales from its Sondris luxury Makati project with Mitsui Fudosan.

ASEAN Digital Deal: Negotiations on the ASEAN Digital Economy Framework Agreement (DEFA) are now wrapped up, clearing the way for signing in November after issues were resolved in Manila talks—aimed at a more integrated, secure digital market across the bloc. Trade & Growth: The Philippines’ external trade in goods rose 16.1% in April to $20.38B, but the trade deficit widened to $5.97B as imports outpaced exports. Banking & AI: Citi says Philippine banks are still mostly in AI exploration, but the gap with advanced markets can narrow fast as use cases move toward real deployment. Power Rates: Meralco reiterated it supports efforts to lower electricity rates and defended bill transparency, saying most charges reflect real power costs and pass-through items. Logistics Push: DHL Express targets double-digit shipment volume growth in 2026, banking on SMEs and its GoTrade export training program. Islamic Finance: Fitch notes the Philippines’ Islamic finance market is still tiny—Islamic banking assets were about $44M end-2025—despite new sukuk and takaful steps. EV Supply Chain: DTI met a Chinese firm exploring partnerships to develop a Philippine EV brand and localize parts and manufacturing. Defense Tech: India’s Defence Secretary said the BrahMos deal with Vietnam is already signed and Indonesia’s pact is in final stages, with the Philippines earlier as the first foreign buyer. Local Economy & Skills: Bukidnon launched its first coffee festival and hosted the SEA Green Coffee competition’s national round, spotlighting farmers and production. Public Safety: Gawad Kalinga founder Tony Meloto was arrested in Bulacan on qualified trafficking charges.

Philippines–Japan Deal Push: President Marcos wrapped up a “highly productive” four-day Japan state visit, upgrading ties to a comprehensive strategic partnership and securing new strategic and economic deals. Defense & Diplomacy: At Singapore’s Shangri-La Dialogue, US Defense chief Pete Hegseth urged allies to raise defense spending and warned China against disrupting the regional balance, while ASEAN defense ministers reaffirmed free flow of trade through international corridors. UNSC Bid: The Philippines is in the final stretch of preparations for its June 3 bid for a UN Security Council seat, facing late competition from Kyrgyzstan. Housing Finance: Pag-IBIG raised the maximum housing loan ceiling to ₱10M, expanding access for qualified members to the Expanded 4PH program. National ID Access: PSA reminded Cebu residents that digital and paper-based ePhilID formats are valid for transactions and that establishments can’t legally refuse them. Customs Enforcement: The Bureau of Customs filed a complaint over abandoned balikbayan boxes worth over ₱30M in unpaid taxes and duties. Legal & Governance: The House divided prosecutors for VP Sara Duterte’s impeachment trial, while the Supreme Court reiterated grounds for legal separation under “grossly abusive conduct.” Energy & Connectivity: Senate President Pro Tempore Legarda convened agencies to diagnose recurring electricity and internet gaps in Antique and Aklan. Business & Industry: SteelAsia recruited repatriated OFWs to commission a structural steel sections mill in Batangas to cut reliance on imports. SME Networking: PHILSME 2026 drew 10,000+ entrepreneurs for in-person business matching and mentorship.

Philippines-Japan Business Push: President Marcos wrapped up a “highly productive” state visit to Japan, with upgraded ties to a Comprehensive Strategic Partnership and multiple MOUs aimed at smart cities, digital services and fintech—plus a renegotiated double-tax treaty expected to cut double taxation and boost investment. Power & Connectivity: Senate President Pro Tempore Loren Legarda led a briefing on power and internet gaps in Antique and Aklan, while Visayas faces possible brownouts as NGCP placed the grid on red alert. Currency & Rates: Analysts warn BSP hikes alone may not stop peso weakness as inflation and growth risks complicate policy. Trade & Logistics: BOC filed criminal complaints vs Makati Express Cargo over abandoned balikbayan boxes, while trade deficit data points to imports accelerating. SME Finance: GCash-linked lending tools like Fuse are expanding formal credit access for MSMEs. Housing & Jobs: DHSUD said over 7,000 Ilonggos will benefit from expanded 4PH housing projects, as CPD flagged rising unemployment and underemployment risks. Legal/Politics: Senate President Cayetano alleged corruption cases are being used to intimidate majority senators amid impeachment-related debate.