AGP Executive Report

Labor Market: Unemployment jumped to 6% in July, the highest since the pandemic era, as job seekers rose faster than hiring. Public Policy & Jobs: Malacañang said easing the ease of doing business—plus job fairs, PES strengthening, skills training, and MSME support—will help absorb workers. Education & Skills: The Philippines posted its best PISA results yet in science, math, and reading, with lawmakers urging the government to keep pushing education and workforce reforms. Budget & Digital Push: DBM proposed PHP53.1B for ICT and digitalization in 2027, expanding free public internet access and online government services. Labor Protection: DOLE filed a PHP47.057B FY2027 budget focused on jobs, workforce readiness, and worker protection. Tax Administration: BIR clarified VAT refund rules for eligible exporters while zero-rating certifications are still being processed. Infrastructure & Local Finance: LANDBANK approved a PHP2.74B loan for Valencia City projects, including a new city hall and hospital upgrades. Energy & Power Reliability: Iloilo City moved to secure long-term power capacity and grid redundancy after recurring interruptions. Transport & Trade: NLEX resumed toll collection after flood-affected lanes reopened; DP World highlighted logistics resilience amid disruptions.

Impeachment & Governance: The Senate impeachment court is set to hear amici curiae on Sept. 16 and hold oral arguments Sept. 23 in VP Sara Duterte’s trial, with prosecutors preparing to mark over 1,800 bank and insurance documents for the unexplained-wealth article starting Sept. 9-10. Anti-Corruption & Courts: DILG says it will seek Sandiganbayan transfer of former House Speaker Martin Romualdez from a private hospital to Camp Crame’s police medical facility after his plunder arrest, as the court orders him to appear. Jobs & Economy: PSA data shows unemployment jumped to 6% in July (3.14M jobless), the highest since the pandemic era, driven by more young entrants (15-24) joining the labor force. Education & Human Capital: PISA 2025 results show gains for the Philippines—mean scores up to 373 (science), 371 (math), 367 (reading)—prompting President Marcos to vow to sustain DepEd’s education push. Power & Infrastructure: NGCP placed Mindanao under alternating red/yellow alerts due to thin operating margins from plant outages and higher demand; separately, NLEX reopened all lanes near San Simon after flood mitigation and dredging work. Labor & Wages: DOLE says Metro Manila Wage Order No. 28 is awaiting NWPC action, with a proposed one-time P60 tranche that could lift the daily minimum wage for non-agriculture workers from P695 to P755. Trade & Food Security: House Speaker Bojie Dy links food security to farmer security, pushing Sagip Saka to improve market access; meanwhile, farm groups warn Middle East-linked fertilizer shocks could hit 2027 rice yields. Digital Identity & Privacy: DICT’s plan to require National ID for social media draws privacy and security concerns over linking government identity to online activity.

Impeachment Watch: The Senate impeachment court set Sept. 16 for amici curiae hearings and Sept. 23 for arguments and a vote on whether to keep the 24-member voting base in VP Sara Duterte’s trial, while prosecutors said they’ll skip remaining Article I witnesses and may call Duterte herself; meanwhile, the prosecution is preparing to mark 1,800+ documents for the unexplained-wealth Article II. Power & Jobs: NGCP put Mindanao under alternating red/yellow alerts as outages and demand left only a 34MW margin, while Cebu business groups warned that recurring outages and higher backup costs could deter investors. Wages & Cost of Living: DOLE said Metro Manila Wage Order No. 28 is awaiting NWPC action, with a possible one-time P60 tranche lifting the daily minimum from P695 to P755. Education: President Marcos hailed PISA 2025 gains, but DepEd chief Sonny Angara warned teacher hiring next year can’t proceed without restored funding. Politics Meets Economy: Former House Speaker Martin Romualdez was arrested for plunder over alleged P7B kickbacks, with DILG saying there were no instructions on how to treat him. Markets: Philippine shares rose on bargain hunting but stayed cautious amid macro and geopolitical risks. Business & Trade: Arkia said it will launch direct Tel Aviv–Manila flights in Jan. 2027, and the government pushed ahead with talks and rules affecting fishing monitoring and other economic sectors.

Impeachment & Governance: The Senate approved a revised Sept–Oct 2026 schedule for the Sara Duterte impeachment trial and budget hearings, keeping impeachment sessions clustered in the mornings and budget work in the afternoons. Anti-Corruption: Former House Speaker Martin Romualdez was arrested on plunder charges tied to a flood-control scandal, while his lawyers sought continued hospital confinement as the case moves through the courts. Education Budget: DepEd’s 2027 spending plan faces scrutiny after a watchdog warned it’s becoming a “discretionary, centrally pooled” budget that could weaken transparency and oversight; DepEd also said it can’t hire 14,000+ new teachers next year without restored funding. Power & Infrastructure: Visayas grids stayed under red alert as demand outpaced supply, with lawmakers pushing investigations into prolonged brownouts; separate reporting also highlighted calls for grid modernization and renewables rather than more fossil-fuel dependence. Jobs & Consumer Pressure: PSA data showed July unemployment rising to 6% (over a four-year high), with youth and NCR hit hardest. Finance & Reserves: BSP reported gross foreign reserves rose to $104.8B at end-August, supported by higher gold prices and investment income. Digital Safety & Regulation: A consolidated children’s social media and online gaming safety law advanced, with platforms facing strict age-based rules and safety-by-design requirements. Business Expansion: Moneymax partnered with EastWest to expand personal loan access, while Lalamove rolled out services across Mindanao and more Visayas cities.

Water Resilience: Manila Water is building a ₱970M, 56-million-liter San Juan Reservoir in Quezon City, targeted for completion by end-2026, to replace the aging facility with a more earthquake-resilient design. Power Supply Stress: NGCP put the Visayas grid on red and yellow alerts due to tight capacity, with possible manual load dropping from 4 p.m. to 9 p.m. affecting about 1M customers across several electric co-ops. Education Funding Push: The Senate approved a permanent merit scholarship program for top senior high graduates (PMSP Act), while lawmakers also flagged DepEd’s 2027 voucher and school-funding consolidation as reducing transparency and regional oversight. Rail Spending: Malacañang said the 2027 NEP includes ₱197.3B for rail projects, including North-South Commuter Railway and Metro Manila Subway Phase 1. Healthcare Protection: The Senate passed the Enhanced Anti-Hospital Detention Act, raising penalties for hospitals that detain patients or families over unpaid bills. Tech & Child Safety: DICT said Roblox has until October to comply with PH requirements on office setup and age verification via the national ID, including platform segmentation and default parental controls. Finance Innovation: RCBC and PDAX will explore tokenized gold access through RCBC digital channels. Trade & Agriculture: The Philippines wants zero tariffs for banana exports to Japan in the JPEPA review, and the DA faces pressure to push for the delayed AnCEF hog modernization fund. Tax Administration: The BIR highlighted its DARES agenda and electronic invoicing push ahead of the Dec. 31, 2026 deadline.

Transport & EV Push: LTFRB opened 8,750 TNVS slots, with 7,500 in Metro Manila reserved for EVs (PHEVs/BEVs), signaling a faster shift to cleaner public transport. Budget & Health Care: A proposed 2027 DOH budget cut is flagged as a threat to an already underfunded, bureaucracy-heavy health system, just as lawmakers debate how much support the sector can realistically absorb. Education Funding: Marcos signed RA 12325 expanding subsidies for 4Ps college and trade students, covering internship, licensure, and added allowances like supplies, transport, and disability support. Critical Minerals Policy: A new framework accelerates critical-minerals development across millions of hectares and streamlines permits via a virtual one-stop shop—prompting Indigenous and environmental groups to warn permits could reshape project costs and consent risks. Power Woes in the Visayas: Iloilo City says there’s no quick fix to ongoing outages, pointing to longer-term generation capacity efforts and the expected LNGPH entry. Financial Inclusion Snapshot: BSP data shows device-based digital finance use is rising, but bank access remains limited—only 32% of respondents say banks are reachable despite 79% awareness. Insurance Growth: FWD Philippines reported Q2 2026 NBAPE of $85m (+23.5% YoY) and a 12.2% market share, reinforcing momentum in life insurance. Marcos & Governance: OP budget for 2027 faces a 64% cut, but Recto says operations will continue as activities tied to hosting ASEAN summits wrap up. Agriculture Risk: Passi City declared a state of calamity after red-striped soft scale insect infestation hit over 3,300 hectares of sugarcane, threatening thousands of livelihoods.

Transport & Infrastructure: LTFRB opened 8,750 ride-hailing TNVS slots in Metro Manila, Ilocos and Bicol, with 7,500 Metro Manila slots reserved for EVs (PHEVs/BEVs) under Circular 2026-084, while Ilocos and Bicol get separate EV allocations. Flood Response: NLEX and MMDA completed flood-defense works on the San Simon stretch in Pampanga, including continuous flood barriers and high-capacity pumps, as traffic updates show some lanes still affected. Markets & Macro: Moody’s cited Philippine monetary and banking strength, while local shares may trade sideways as a weaker peso and higher oil prices weigh on sentiment. Trade & Growth: Philippine exports hit $54.92B in Jan–July 2026, a 35-year high, with July sales rising to $8.15B. Social Protection & Finance: SSS is rolling out a digital micro-loan (SSS LoanLite) in Davao, with short repayment terms and safeguards against unauthorized online lending. Public Services & Governance: OP said its 2027 budget would be cut by 64% but still cover core functions after streamlining and Asean Summit-related spending. Public Safety: BOC/partners seized an additional 123.91 kilos of kush in Subic, lifting the haul to ₱366.65M. Business Climate: BSP data showed business confidence fell in July due to Middle East tensions, oil prices and inflation pressures. Recognition: Inquirer reporter Ian Nicolas P. Cigaral won a PIDS media award for research-based economic reporting. Tourism: Taiwan stepped up its tourism push in Manila, while Guam hosted a major MegaFAM trade show with Philippine participation.

Flood & Traffic Management: NLEx reported light traffic Sunday morning but still flagged water buildup in parts of San Simon (Pampanga), with some lanes passable and others impassable, while the Libtong Exit was temporarily closed as the tollway operator moves to install concrete flood barriers after last week’s gridlock. Public Transport Coordination: The LTFRB ordered regional offices to coordinate with expressway operators and LGUs to share real-time road status and identify alternative routes during emergencies, after the Aug. 28–31 NLEx congestion. Health Budget Watch: ACT Teachers’ Rep. Antonio Tinio criticized the 2027 DOH budget cut, warning it could worsen hospital operations and deepen medical staffing shortages. Education Support: Executive Secretary Ralph Recto said the Marcos administration is pushing to institutionalize the Expanded Presidential Merit Scholarship Program, with 155 Quezon, Bukidnon scholars receiving grants and Senate approval on track. School Safety Aid: Senate President Win Gatchalian provided P50,000 each to families of three Tacloban students killed in a June 22 school shooting as lawmakers push safety measures. Creative Economy: Sen. Loren Legarda urged stronger investment in Filipino culture and creativity, citing PSA data showing the creative economy hit P2.12T in 2025 and supported 8.71M jobs. Agribusiness Exports: DA-11 said Philippine Saba bananas will enter new markets after supply deals signed at Asia Fruit Logistica Hong Kong, with shipments targeted for Hong Kong and New Zealand. Digital Payments Expansion: GCash is set to expand in tax refunds, while QR payment links like Alipay+ and PPMI’s QR Ph push more cross-border-friendly acceptance for Filipino businesses. Security & Enforcement: BOC-Port of Subic reported a rising kush haul from a yacht inspection, now valued at P366.65M, as authorities continue stripping and coordinating with PDEA and other agencies.

Public Finance: Lawmakers warn DOH’s 2027 budget cut will worsen hospital staffing gaps and operations, with Metro Manila facilities facing lower funding than 2026. Power & Infrastructure: NGCP says the Visayas grid is short on available generation, forcing longer rotational brownouts in Cebu as supply tightens. Transport & Disaster Response: LTFRB orders expressway operators and regional offices to share real-time traffic updates and map alternative routes after flood disruptions on NLEx eased but left lingering slowdowns. Trade & Agriculture: DA-11 reports new export deals for Philippine Saba bananas, with shipments and distribution partners lined up for Hong Kong and New Zealand. Business & Markets: Peso pressure continues as markets react to stronger US jobs data; regional currencies are seen under pressure next week. Public Safety & Enforcement: BOC-Port of Subic raises its kush seizure haul to P366.65M after finding more packages during a continuing inspection. Local Governance & Compliance: San Ildefonso, Ilocos Sur creates a task force to curb illicit tobacco and vapor sales, citing rising student vaping and regional cigarette seizures. Digital Economy & Inclusion: SEC clearance paves the way for GCash parent Mynt’s record IPO listing timeline, keeping fintech momentum in focus.

Inflation & FX Watch: Philippine headline inflation eased to 6.1% in August, but the peso still slid to a fresh record low around P62.59:$1, keeping pressure on consumers and business costs. Banking & Capital Markets: SEC cleared GCash parent Mynt’s landmark P92.3B IPO, with an October 20 PSE listing date; Mynt’s IPO also got SEC approval. Energy & Power: Sen. Loren Legarda filed a bill to create a fuel-security framework and strategic petroleum reserve to speed government action during fuel emergencies. Public Spending Scrutiny: Sen. Raffy Tulfo showed photos of allegedly buried expired DOH medicines during the 2027 budget hearing, renewing calls for tighter procurement and disposal controls. Infrastructure & Transport: NLEx flood conditions eased, with traffic delays down to about 11 minutes in affected Pampanga sections after earlier near-standstill flooding. Business & Jobs: Dole is fast-tracking a shipbuilding training center in Zambales with Korean partners to build local workforce capacity. Agribusiness: CEVIPPCO and DA-RFO VII distributed 400 premium-bred gilts to Cebu hog farmers to support recovery. Governance & Legal: NBI filed qualified human trafficking complaints over an alleged “honey trap” plot involving Batangas Rep. Leandro Leviste, former Rep. Jacinto Paras, and others tied to a scheme against Exec. Sec. Ralph Recto. Maritime: Coast Guard issued a navigation warning after a containership lost 46 containers in Philippine waters near Batangas.

Fuel Security Push: Sen. Loren Legarda filed a bill for a permanent fuel-security framework and a strategic petroleum reserve, aiming to speed up government verification of inventories, costs, and margins during fuel emergencies. Water Efficiency Upgrade: Manila Water’s PEZA-Cavite program recovered about 1.7 million liters of water per day via district metered areas, leak detection, and valve replacements. Health Procurement Scrutiny: Sen. Raffy Tulfo pressed DOH officials over alleged burial of millions in expired medicines during the 2027 budget hearing. Impeachment Trial Tactics: House prosecutors are weighing dropping the bribery article in VP Sara Duterte’s impeachment case to move faster to unexplained wealth claims. Power Reliability Plan: DOE targets fixing Visayas and Mindanao electricity issues before Christmas using diesel barges and battery storage, amid ongoing supply constraints. Ombudsman vs “Basura Kings”: The Ombudsman will form a special team to probe corruption in garbage collection and waste management contracts nationwide. Maritime Incident: DMW reported two Filipino seafarers died after an attack on a Saudi-flagged tanker near the Strait of Hormuz; repatriation and family assistance are underway. Telco Capex: PLDT, Globe, and Converge set 2026 capex above $2.2B to expand connectivity and infrastructure. Anti-Fraud Enforcement: LTO raided Davao City establishments for fake vehicle license plates, arresting six and seizing 64 counterfeit plates.

Flood & Infrastructure: NLEX reported water still on all lanes at the San Simon interchange in Pampanga, with only some lanes passable and traffic build-ups lingering as monsoon rains continue. Ombudsman & Anti-Corruption: The Senate panel approved the Ombudsman’s 2027 budget of P7.232B and backed creation of a Marshal Service; COA also submitted 50 fraud audit reports on flood control projects to the Ombudsman, while Remulla said more flood-control cases are moving through courts and preliminary probes. Inflation & Peso: Philippine headline inflation eased to 6.1% in August (from 6.2%), driven by slower food and electricity increases, though price pressures remain; separate reports flagged the peso’s continued weakness near record lows. Energy Supply Crunch: DOE targets fixing Visayas and Mindanao power issues before Christmas, using diesel barges and battery storage while grid alerts and possible brownouts were reported in parts of Mindanao and Visayas. Governance & Confidential Funds: House prosecutors are weighing whether to skip the bribery article in the Sara Duterte impeachment to focus on unexplained wealth, while lawmakers push for clearer disclosure and safeguards around confidential and intelligence funds. Aviation & Business: Philippine Airlines received its fourth Airbus A350-1000 to expand long-haul capacity. Public Safety & Justice: Napolcom said a Cavite police case was “watered down” after alleged pressure to manipulate filings, and the Supreme Court invited the Ombudsman to file a proper complaint over claims of CA reversals.

Impeachment Watch: The House prosecution received bank documents and tax records for VP Sara Duterte, Manases Carpio, and related firms as it prepares for the unexplained wealth case, with prosecutors also weighing whether to drop the bribery article to move faster. Anti-Corruption & Flood Accountability: The Ombudsman said 35 flood-control cases are already in court and 166 more are under preliminary investigation, while COA submitted 50 fraud audit reports to the Ombudsman; DENR also ordered tighter, science-based monitoring of flood risks using drones, satellite imagery, and early alerts. Justice System Scrutiny: Ombudsman Remulla urged “soul-searching” in the judiciary after dismissals by the Ombudsman were reversed by the Court of Appeals, and he defended the need for confidential funds to pursue investigations. Infrastructure & Local Impact: San Miguel pushed back on claims that the New Manila International Airport caused Bulacan flooding, saying the project includes long-term flood mitigation and that flooding predates the airport. Currency & Macroeconomy: The peso hit a new record low at P62.565:$1 as Palace said fiscal discipline and support measures will cushion inflation and protect investments. Energy & Disruptions: Rotational brownout risks rose as Mindanao and Visayas grids faced red alerts, while Metro Cebu dealt with both power shortages and unhealthy haze.

Peso slide & inflation jitters: The peso hit a new record low near ₱62.565:$1 as Middle East tensions revived risk-off sentiment and pushed up oil and the US dollar. Energy & power bills: The BIR is preparing a circular to remove VAT on electricity system loss charges after an ERC resolution, targeting mid-September implementation. House & Senate governance: The Senate passed on final reading a bill barring public officials’ relatives from government contracts; the House also advanced PAL’s 50-year franchise extension to 2076. Health budget pressure: Malacañang’s proposed 2027 DOH and PhilHealth cuts could delay hospital bed expansion and strain coverage. Impeachment updates: In VP Sara Duterte’s trial, the Senate impeachment court declared Michael Poa a hostile witness as testimony continued on confidential funds. Public services & climate impacts: NLEx reported flooding-linked traffic disruptions, while Zambales and Cebu kept classes suspended amid monsoon rains and wildfire haze. Business & markets: Globe kept open a possible REIT listing for its data center arm as AI demand tightens capacity; COL Financial flagged that the upcoming GCash IPO could prompt portfolio reshuffling. Security & enforcement: The NBI seized about ₱63M in counterfeit luxury clothes in Pasay and Valenzuela.

Peso & inflation watch: The Philippine peso slid to another record low around ₱62.4:$1 as Middle East tensions pushed oil higher and boosted dollar demand, keeping inflation risks front and center. Energy relief & taxes: The BIR is preparing a revenue memo to remove VAT on the allowable system loss charge in electricity bills, aiming for faster consumer relief after an ERC resolution. Power crunch updates: NLEx reported flooding-driven lane closures in Pampanga, while the Visayas grid stayed on red alert again as supply remained tight; Mindanao also saw red/yellow alerts due to capacity shortfalls. House & Senate moves: The House approved final passage of a 50-year Philippine Airlines franchise extension, and also advanced a bill to condone and restructure unpaid interests and penalties on farmers’ loans. Impeachment trial: Day 21 of VP Sara Duterte’s impeachment featured DepEd confidential funds testimony, with the Senate court declaring Michael Poa a hostile witness and allowing leading questions. Public finance & governance: The Senate approved a setup to run budget hearings alongside plenary sessions to speed up the 2027 national budget process. Agriculture & fisheries: DOH said it targets lower stunting rates by 2027 despite reduced nutrition funding, while DA-BFAR is set to highlight tech-driven fisheries management in Cebu. Maritime safety: Saudi shipping firm Bahri confirmed two Filipino seafarers died after a security incident in the Strait of Hormuz.

Peso Slide & BSP Watch: The peso hit a fresh record low around ₱62.4:$1, pressured by higher oil prices, a stronger US dollar, and geopolitical risk—even after the BSP’s latest rate hike to 5%. Monetary Policy Debate: A think tank warned BSP should not end tightening early, saying real rates remain negative and markets want clearer forward guidance. Manufacturing Momentum: S&P Global reported the August PMI at 54.9, the strongest improvement in nearly a decade, signaling recovery despite earlier disruptions. Budget & Spending Pressure: The DA said P16B for 2027 farm-to-market roads is insufficient for the 55,000 km backlog, while the DA’s overall 2027 farm budget request is P198.45B. Power & Water Investments: Meralco’s bidding for 600 MW supply saw major players submit lowest offers; Metro Pacific Water plans ₱23B by 2031 for network upgrades. Transport Disruption: NLEx faced scrutiny after flooding near Tulaoc Bridge triggered long traffic jams; the TRB ordered explanations and possible toll fee relief. Cyber & Telecom Controls: PNP-ACG pushed for amendments to the SIM Registration Act, citing continued SIM-linked cybercrime, while NBI arrested a foreign national over an alleged IMSI catcher used for phishing. Corporate Moves: Jollibee is considering a Hong Kong listing for its international unit as it spins off overseas operations. Tourism Push: DOT wants to expand China’s 14-day visa-free access to secondary airports to boost arrivals. Local Business & Consumer Life: SM Supermalls expects a stronger Christmas season, citing record first-half performance and rising occupancy. Food Hubs Plan: DA targets 10–12 mega food hubs to cut middlemen and improve farmer earnings, starting with hubs in Clark, Isabela, and Pili.