AGP Executive Report

Flood Response & Accountability: Malacañang suspended in-person work and classes in 15 Luzon provinces as habagat rains continue, while DPWH chief Vince Dizon relieved a maintenance official over delayed calamity response and lawmakers urged finishing unfinished flood control projects first. Transport Disruptions: NLEX reported heavy traffic and temporary exit closures due to flooding, deploying barriers, siphoning trucks and intensified pumping to reopen affected sections. Energy Reliability: NGCP put the Visayas grid on red alert, with possible one-hour rotational brownouts in Metro Cebu as outages and reduced generation tighten supply. Business & Investment Climate: BIR Commissioner Charlito Mendoza pushed for fair, simple and predictable tax enforcement under the BIR DARES agenda, while foreign “hot money” posted net outflows of $3.94B in Jan–Jul amid inflation and geopolitical caution. Trade & Industry: DTI said coconut exports surged 34.4% to $3.6B in 2025 as it promotes higher-value products; Asean called for more clean energy, digital infrastructure and resilient supply-chain investments. Regional Economy Watch: PSA data showed Central Visayas family income rose 16% in 2025 but spending climbed faster, squeezing household budgets. Corporate Performance: Metro Pacific Tollways reported higher core earnings in H1 as new highway segments offset softer Philippine traffic. Policy & Governance: A coalition opposed Pax Silica, warning of displacement and resource risks tied to a US-led tech supply-chain push. Local Business Risks: A Subic Freeport landslide killed two workers, prompting calls for an independent probe into project planning and monitoring.

Flood & Infrastructure Oversight: Heavy habagat flooding snarled parts of NLEx, with temporary closures and rerouting as rains continue, while DPWH relieved a maintenance chief over delayed calamity response—renewing calls to finish unfinished flood control before new projects. Budget & Governance: ACT Teachers party-list Rep. Antonio Tinio warned of possible DPWH “insertions” in the House 2027 GAB, raising concerns over how projects get funded and released. Currency & Inflation Pressure: The peso slid past ₱62/$ to fresh lows, with economists warning of cost-push inflation as manufacturers face higher import bills; August inflation is seen easing but still above the BSP target. Power Reliability & Energy Policy: Visayas grid issued another red alert as capacity shortfalls persist; DOE is also pushing rules to force stalled coal projects to build or surrender permits, while Pax Silica’s power plan drew investor skepticism. Renewables Deals: First Gen secured a 25MW geothermal supply contract for Alliance Global facilities, and the government eyes higher 2027 biodiesel blends as coco methyl ester prices stabilize. Capital Markets & Banking: SEC moved public offering registration fully online via OARS to speed fundraising; BSP is updating its Discount Window Facility rules to improve short-term liquidity access. Business & Trade Signals: DTI flagged export momentum from electronics and services; IFC approved $170M for YCO Cloud’s data center expansion. Regional Economy Snapshot: PSA data showed Luzon cities and provinces dominate local economic output in 2025, with Quezon City leading.

Peso & Markets: The PSEi slid to the 5,900 level for a fourth straight day as the peso weakened to fresh lows and BSP’s rate hike plus softer growth outlooks weighed on sentiment. Remittances: Cash sent by Filipinos in Bahrain rose to about $140M in the first half of 2026, lifting year-on-year transfers despite Bahrain ranking last among Gulf states for Filipino remittances. Energy Costs & Policy: Sen. Erwin Tulfo pushed for oil pricing transparency to curb “arbitrary price shocks,” while diesel and gasoline price rollbacks were set to start in September. Health & Taxes: Health groups urged lawmakers to impose at least P80 tax on vapes, arguing current proposals won’t stop youth access and addiction. Food Security: USDA warned the Philippines could see the highest food insecurity rate in Southeast Asia this year, with 15.4M people projected to be food-insecure. Environment & Risk: DENR’s “earth-balling” of mangroves faced calls to be suspended, while SM Investments partnered with PHIVOLCS to use GeoRiskPH hazard data for disaster-resilient planning. Labor & Identity: PSA and Ateneo urged banks to use the National ID’s NIDAS for customer verification as BSP considers linking KYC systems. Infrastructure & Business: DPWH flagged possible insertions in the 2027 budget, and it also targeted awarding the first phase of the Bataan-Cavite interlink bridge by September. Trade & Industry: PEZA said it wants more shipbuilding locators as South Korean yards outsource and Philippine capacity expands. Tech & Cyber: PaperCut servers are under active attack, with many installations still unpatched.

OFW Support: The House backs an added P1 billion for the DMW’s Aksyon fund in the 2027 budget to keep medical, financial and humanitarian help flowing to distressed overseas Filipino workers. Local Finance Guardrails: The LMP says the proposed P58.32B Local Government Support Fund for 2027 will be protected from partisan favoritism via DBM safeguards and an equitable distribution menu. Digital Lending Push: JuanHand rolls out “top-up loans” so eligible borrowers can take extra funds within their credit limit in as fast as five minutes, as it expands beyond its ₱1.16T lending base. Disaster Risk & Planning: SM Investments partners with Phivolcs to use GeoRiskPH hazard tools for business continuity and long-term investment planning. Food Security Watch: USDA flags the Philippines at 15.4M food-insecure people (12.6%), the highest in Southeast Asia this year. Environment Under Pressure: Groups urge DENR to suspend mangrove earth-balling, warning it could kill up to 80% of trees removed. Health Policy: Advocates push a unified vape tax of at least P80, arguing current proposals won’t stop youth access and addiction. Co-op Tax Relief Bid: Cooperatives seek raising the reserve fund tax-exemption ceiling to ₱100M from ₱10M. E-commerce Next Wave: Great Deals bets on “AI commerce,” positioning for AI agents that can sell and help consumers buy. Flood Control Alarm: Lubao’s deadly flooding highlights urgent gaps in flood control and preparedness. Judicial Process: JBC opens applications for the next Supreme Court chief justice ahead of Gesmundo’s retirement on Nov. 6.

Ombudsman & Governance: The House impeachment team said it doesn’t need former OVP security chief Col. Raymund Dante Lachica’s testimony to back its claim that Vice President Sara Duterte misused confidential funds, arguing earlier testimony already shows Duterte’s role as approving authority. Public Finance & Local Funds: The League of Municipalities of the Philippines backed the proposed 2027 Local Government Support Fund of ₱58.32B, saying DBM safeguards aim to prevent political favoritism and ensure fair LGU distribution. Education Funding Scrutiny: A solon questioned CHEd over alleged rejection of solo-parent scholarship requests despite available funding, citing zero obligations/disbursements for the Tulong Dunong Program in 2025. Energy & Renewables: The DOE is moving to accelerate offshore wind by securing land property processing via a MOA with PNOC, targeting offshore wind auctions by December for delivery from 2028-2030. Markets & Cost of Living: The peso slid to a new record low around ₱62:$1, while fuel price rollbacks are being eyed for Sept. 1 and jet fuel surcharge hikes are also in focus. Digital Safety: Meta committed to sharing subscriber and traffic data with Philippine authorities when child-safety threats are identified, even before an attack occurs, as part of cooperation on online threats. Sports & Tourism: Lapu-Lapu City won Destination Marketing Event of the Year at the Philippine Sports Tourism Awards for hosting Ironman 70.3.

AI & Cybersecurity: BIR and Ayala signed an MOA to build “Terry,” an AI-powered tax assistant to help tax staff retrieve and cross-check rules and issuances, while Meta pledged to remove harmful AI deepfakes and share subscriber/traffic data with Philippine authorities when threats to children are identified. Markets & FX: The peso hit a new record low of ₱62.265 per dollar as the BSP raised rates to 5%, and the PSEi slid below 6,000 amid growth worries and MSCI rebalancing. Inflation & Costs: BSP expects August inflation to stay at 5.5%–6.5%, and the CAB lifted allowable fuel surcharges from Sept. 1, likely pushing early-September airfares higher. Trade & Industry: The trade deficit widened to $5.97B in July as electronics exports rose but imports of components kept piling up; ICTSI agreed to buy a port and cargo operator across Mozambique, Namibia and South Africa. Energy & Infrastructure: DOE and PNOC moved to speed offshore wind land/permit processing; ACEN and Yanara secured a P2.3B loan for a Pangasinan solar farm. Governance & Justice: Ombudsman actions targeted alleged unfinished road projects (P80.61M) and a separate ₱77M “non-existent” flood control project, while it also questioned Sen. Loren Legarda’s extended medical leave amid an investigation. Public Services & Social Support: PCSO reported ₱97.84B in contributions to the national government (2022–first semester 2026), and DepEd is set to strengthen its ARAL reading program after strong first-year gains.

BSP & FX: The peso slid to a fresh record low, breaching ₱62 per $1 and closing at ₱62.265 after the BSP lifted its policy rate to 5%, while inflation relief is “in sight” but weather and wage risks remain. Markets: The PSEi sank below 6,000 to 5,956.33 as investors digested the rate hike and weaker growth outlooks. Energy & infrastructure: ACEN and Yanara secured a ₱2.3B loan for a 75MW solar farm in Pangasinan under the green auction program, while DOE and PNOC are fast-tracking offshore wind infrastructure ahead of the next clean energy auction. Food security & poverty: A new SWS hunger read shows 20.3% of families experienced involuntary hunger, with hunger highest in Mindanao, and PSA data points to multidimensional poverty beyond income. Governance & business climate: The SEC warned the public about an advance-fee loan scam impersonating Bestloan; the SC also ruled that BP 22 bouncing-check notices can be served electronically. Public services: DepEd’s ARAL program shows early reading gains, and Manila Water is rolling out September desludging to prevent wastewater overflow. Legal & land: The Ombudsman filed new malversation cases over alleged non-existent flood control projects in Bulacan, while LRA is probing land titles tied to alleged illegal reclamation in Taguig.

Multidimensional Poverty: PSA’s first Multidimensional Poverty Index shows 12.4% of Filipino households (12.8% of individuals) are poor beyond income, with deprivations spanning education, health, housing, sanitation and employment—pushing calls for better-targeted social spending. 2027 Budget Scrutiny: Business groups and lawmakers are zeroing in on the ₱7.2-trillion 2027 budget as a transparency test, amid warnings about opacity and corruption risks. Fiscal Pressure: The national budget deficit widened to ₱106.3B in July (up 462%), while infrastructure spending stayed sluggish, falling 40.8% in the first half—raising concerns for growth and project delivery. Rates, Stocks, Peso: BSP hiked to 5% again, dragging the PSEi to near 6,000 and pushing the peso to a record close of ₱61.888/$1. Renewables Deal: PetroEnergy will sell a 35% stake in PetroWind to Japan’s SMFL Mirai for ₱1.7B to simplify ownership and expand renewable participation. Disaster & Food Supply: Monsoon rains hit Benguet vegetables, with farm losses reported at ₱446.55M, while Nepal-Tibet floods left hundreds dead and over 1,400 missing, including a reported Filipino. Public Services & Local Governance: DILG chief Remulla wants Local Government Code amendments to unify waste management by region. Digital Economy & AI: PhilWeb elected Lance Y. Gokongwei as chairman to accelerate AI infrastructure, while Equinix doubled Equinix Foundation funding with a $50M pledge for digital skills and connectivity.

Budget & Governance: Lawmakers filed the ₱7.2T 2027 national budget bill in the House, with Congress expected to scrutinize and potentially realign allocations amid slower growth, inflation pressure, climate risks, and tight fiscal space; business groups are also pushing for “zero tolerance” for budget insertions and ghost or substandard projects. Public Finance Watch: The Bureau of the Treasury reported the July budget deficit widened to ₱106.3B as spending ramped up faster than revenue, bringing the year-to-date gap to ₱893.1B. Monetary Policy & Markets: The BSP raised rates to 5% for the third time this year, citing volatile oil, El Niño risks, and possible wage-driven inflation; the PSEi slid to around the 6,000 level as investors reacted to the tighter stance. Peso & Inflation: The peso hit fresh lows near ₱61.9/$ as the BSP lifted its 2027 inflation outlook, while the central bank said it can’t “fix” the exchange rate at a specific level without draining reserves. Energy & Industry: DOE plans the first coal-blending facility to reduce Indonesia supply dependence; DTI said the government will settle remaining ₱5.16B CARS obligations before rolling out new EV incentives. Digital Economy & Finance Inclusion: PSA and GCash expanded National ID registration to boost digital financial inclusion for unbanked adults lacking documents. Infrastructure & Delivery: DBM said infrastructure spending contractions may be bottoming out as funds are released and agencies are urged to speed up implementation in the second half. Food & Agriculture: A study flagged rice input costs rising faster than retail prices, raising pressure along the supply chain even as consumer prices stay steadier. Compliance & Regulation: The SEC will require online registration for public share and bond offerings to cut processing time; MTRCB warned against fake permits after a “Tatsulok” screening controversy.

Power Reliability: NGCP kept the Visayas Grid on red and yellow alerts, citing nine plants on forced outage and 16 running derated, with 916.2 MW unavailable. Smuggling Crackdown: The Philippine Navy seized alleged smuggled diesel and cigarettes worth at least P147.29M in Zamboanga Peninsula operations, turning items over to Customs for disposition. Digital Payments Rule: BSP Deputy Gov. Mamerto Tangonan said utilities and billers—not consumers—should shoulder digital payment fees, pushing banks to standardize merchant/biller fee responsibility. Insurance: The Insurance Commission reported non-life premiums up 9.96% to P44.19B in H1 2026, with net income up 44%. Property & Markets: Banks cut property lending share to 18.72% of total loans (lowest since 2018), while PSE flagged the Tampakan-linked Dominion merger as a backdoor listing. Tourism & Travel: Vietjet will launch Clark–Ho Chi Minh direct flights starting Nov. 10. Energy Policy: A think tank said FIT-All support delivered P99.2B in power savings over two years. Child Online Safety: A Senate panel endorsed a bill setting 16 as the minimum age for social media use. Regulation Watch: DTI said 93% of vape brands are unregistered, urging tougher enforcement. Infrastructure Planning: Sen. JV Ejercito renewed calls for a 30–50-year national infrastructure master plan. Local Business Expansion: SM Prime is expanding three malls in Iloilo, Sto. Tomas and Naga, adding 70,000 sq m of retail space.

Philippine Economy Outlook: Capital Economics warns of a “slow and bumpy” recovery, projecting 3% GDP growth in 2026 as corruption fallout and the Iran war weigh on activity. Power & Utilities: NGCP put Visayas under red alert (3pm-9pm) as supply stays tight; in Mindanao, Davao Light inaugurated the 10 MVA San Pedro substation to boost reliability for Panabo’s Anflo Industrial Estate. Digital Safety & Regulation: The Senate endorsed a bill setting 16 as the minimum age for social media use, pushing platforms to add age-assurance systems to protect minors. Gaming & Enforcement: PAGCOR said it will launch an app to steer players to licensed platforms and curb illegal online gambling; meanwhile, the BIR and NBI seized nearly 300 unregistered betting machines in Metro Manila and Southern Luzon. Infrastructure & Environment: DENR returned DPWH’s tree-cutting permit application for the Metro Manila Bridges Project after concerns over impacts on over 1,000 trees; lawmakers also pushed for a long-term infrastructure roadmap via the MIND Act. Business & Investment: Manila Water’s unit expanded into full O&M services for water and wastewater assets, while DOST proposed higher scholarship funding for STEM. Poverty & Prices: PSA reported poverty hit a record low 9.7% in 2025, but Ibon flagged that official standards may miss how insecure many still feel; rice inflation eased in Occidental Mindoro as fuel and logistics costs slowed.

Credit & Markets: Moody’s kept the Philippines’ investment-grade Baa2 rating with a stable outlook, with DOF and BSP pointing to resilient fundamentals despite global headwinds; meanwhile the PSEi slipped below 6,200 as investors stayed cautious on US-Iran risks and awaited BSP signals. Investment & Industry: PEZA approvals surged 334% in August to ₱64.57B, lifting the agency closer to its ₱300B target; big-ticket projects drove most of the jump. Policy & Regulation: Marcos backed a push for fully Filipino-made EVs, including electric tricycles and jeepneys, while ARTA said it will help streamline rules for Pax Silica in New Clark City; SEC also reiterated that joining its sandbox doesn’t guarantee approval for Binance-linked services. Tax & Consumer Impact: DOF’s proposed higher excise taxes on sweetened beverages drew pushback from Mondelez and retailers over possible price and supply-chain effects; lawmakers also moved to protect workers from climate hazards and push for travel tax abolition. Health & Social: PhilHealth and St. Luke’s expanded access via no balance billing/no-copayment; youth groups warned vapes are spreading in schools. Energy & Infrastructure: DOE plans to sell remaining government LPG stocks to retailers at about ₱60/kg; NAIA’s new operating framework sets performance standards for PAL under NNIC. Security & Enforcement: NBI flagged “groomers” allegedly recruiting minors for violence after the Zamboanga school shooting; separately, a shabu buy-bust in Calapan led to charges. Business Moves: FORTÉ acquired Vega Global to expand workplace tech reach across APAC, including the Philippines.

Airport Operations: New NAIA Infra Corp. signed an airport use agreement with Philippine Airlines, setting performance targets to improve efficiency and service standards at the country’s main gateway. Housing & Budget: House lawmakers are pushing to restore funding for DHSUD and attached agencies after 2027 NEP cuts, with requests aimed at boosting housing-related programs. Healthcare Access: President Marcos backed St. Luke’s–Global City and PhilHealth’s No Co-payment policy, urging more hospitals to help ensure Filipinos aren’t denied care due to cost. Public Finance & Tax: Sen. Mark Villar renewed calls to pass the Travel Tax Abolition Act, arguing the decades-old levy adds burden to Filipinos traveling for work, study, and medical needs. Energy & Power Reliability: Visayas grid alerts triggered possible power interruptions in Tacloban and parts of Leyte, while Cebu officials flagged reliability as a growing competitiveness issue. Investment Climate: PEZA approved ₱216.46B in investments from Jan–Aug, up 74%, targeting ₱300B for the year. Markets: Philippine stocks slid as Middle East tensions spurred risk-off sentiment ahead of the BSP policy review. Fuel Costs: Diesel prices rose by up to ₱2.31/liter on Aug. 25; Malacañang said no fuel subsidy for private motorists is being discussed yet. Regulation & Compliance: BIR and the Supreme Court discussed aligning eDST with eNotarization to remove remaining paper-based steps in documentary stamp tax payments. Health Crisis Response: NKTI tightened ER admissions amid a leptospirosis surge, with PGH offering capacity for non-leptospirosis patients. Environment & Waste: Parañaque cleared Baclaran estero after high tide washed garbage into waterways, coordinating with MMDA and local partners.

Pax Silica & Digital Infrastructure: Stratbase urges the Philippines to build fiber networks, data centers, and backup connectivity ahead of the US-led Pax Silica push for AI, semiconductors, and advanced manufacturing in New Clark City. Business District Overhaul: BCDA targets finishing a refreshed BGC master plan by December, with mobility and more open spaces aimed at easing congestion. Monetary Policy Watch: Deutsche Bank says BSP should still deliver another 25 bps hike to 5% as inflation remains broad-based, even as headline rates ease. Index Moves: BPI and SM Prime are shifted to FTSE Global Equity’s Mid Cap segment, while other firms see reclassifications. Capital Markets Reform: The SEC proposes a “One Business Start Date” so firms can begin operations after SEC registration or a primary license while other permits are processed in parallel. Insurance Growth: Life insurers’ premiums rose 17.91% to ₱229.98B in 1H 2026, with variable life driving collections. Energy & Clean Mobility: BCDA signs an MoU with StB GigaFactory to study renewable power, battery storage, and electric mobility in New Clark City. Agriculture & Food Security: DA plans an early-warning system to prevent vegetable gluts by tracking harvests, weather, and farm-gate prices. Poverty Debate: New PSA poverty figures hit record lows, but lawmakers question whether the official thresholds reflect real household needs. Health Access: DKT Philippines launches “Hiraya,” a floating clinic bringing free family planning services to remote Mindanao communities starting September. Aviation: House approves PAL’s 50-year franchise renewal on second reading, supporting long-term fleet and route investments. Regulatory Compliance: DOLE reminds private employers workers may refuse work during severe weather with imminent danger, without administrative sanctions.

Fuel Prices: Oil firms are set for another round of pump hikes starting Aug. 25, with diesel up as much as ₱2.31/liter and gasoline up to ₱1.08/liter, as US-Iran tensions keep global prices elevated. Disaster Readiness: DBM released ₱1 billion to UP for Project NOAH to strengthen AI-powered flood forecasting and hazard tracking, aiming to shift LGUs from reactive relief to earlier warnings. Water Infrastructure: Manila Water added 14,501 new connections in H1 2026, pushing total East Zone service connections to 1.223 million, supported by continued pipeline expansion and new raw water sources. Public Health: Sen. Risa Hontiveros backed a Comprehensive Tuberculosis Elimination Act, warning that screening alone isn’t enough and calling out gaps from testing to treatment completion. Gaming & Regulation: Pagcor expects income to fall amid delinking of e-wallets from online gambling and Middle East-linked demand softness, while also facing a Supreme Court remittance issue to the Philippine Sports Commission. Aviation: The House approved on second reading the 50-year franchise renewal for Philippine Airlines, giving it long-term certainty to expand routes and modernize its fleet. Digital Finance: Maya said it has integrated National ID eVerify into onboarding to speed up account upgrades while keeping verification robust. Energy Oversight: Sen. Erwin Tulfo pressed the energy ecosystem to share the burden of system loss reduction, not just distribution utilities. Legal/Banking: The Supreme Court ruled a depositor can’t be compelled to return money mistakenly credited before proper check clearing, stressing banks’ duty of diligence.

Customs Crackdown: The Bureau of Customs will issue a warrant of seizure and detention for actor Derek Ramsay’s Porsche 918 Spyder over alleged misdeclared use of a fake license plate, with the vehicle set for auction after seizure proceedings. Digital Payments Boom: BSP data show InstaPay and PESONet transactions surged nearly 45% to ₱19.16T in the first seven months, as banks and e-wallets cut or waived transfer fees. Energy Reliability Pressure: DOE warns about possible suspension of around 40 power plants for noncompliance with reliability reporting, as Visayas grid alerts were raised again due to tight supply and forced outages. Rate-Hike Watch: Economists expect BSP to raise rates by 25 bps to 5% at its Aug. 27 meeting, citing inflation risks and peso weakness despite slower growth. Retail & Property Moves: Ayala Land expands Makro’s presence across four mixed-use estates to boost recurring income, while 7-Eleven says hard discounters pose no material threat to sales. Policy & Investment Themes: DEPDev warns growth could weaken further in 2026 amid Middle East risks, governance concerns, and El Niño; HSBC flags renewables and AI data centers as key FDI “big bets.” Local Economy & Social Support: Cebu City treasurer backs per-event tax cuts for SM Arena instead of a longer amusement tax exemption, while DSWD reports over 44,000 Bohol households received Uplift aid as of mid-August. Critical Minerals Debate: ACT Teachers Rep. Antonio Tinio calls EO 122 a “wholesale surrender” of ore wealth, arguing it benefits foreign miners more than Filipinos.