AGP Executive Report

Nutrition & Crisis Response: The House approved on third reading the KALINGA Act (HB 9305), creating a time-bound national emergency response framework to cushion fuel-driven inflation and energy shocks, after oil spikes tied to the US-Iran conflict. Food Security Push: Lawmakers also unanimously passed HB 9466, converting the national feeding program into a broader national nutrition program to tackle hunger, malnutrition, and learning poverty. Energy Transition Pressure: Environmental groups urged faster renewable energy rollout, warning a possible “Super El Niño” could worsen climate and water risks. Fisheries Enforcement: BFAR faced renewed scrutiny as lawmakers and groups called for release of vessel monitoring data after reports of commercial fishing intrusions into municipal waters. Trade & Compliance: The US signaled possible new Section 301 forced-labor tariffs that could hit Philippine exports, while local exporters warned compliant firms could be unfairly penalized. Governance & Industry: A Sandiganbayan witness testified DPWH “errata” for a flood control case skipped required internal endorsement, as the malversation trial continues. Local Business & Payments: PCCI opposed a proposed ₱240 immigration fee tied to a border security PPP, saying it could weigh on travelers and firms. Markets: Philippine stocks rose for a third straight session, led by ICTSI, as investors weighed geopolitical and oil-related risks.

Energy & Policy: President Marcos urged the Senate to “get back to work,” saying an impasse is blocking urgent legislation and that a supplemental budget and legal amendments are being studied to cushion the Iran-war-driven oil shock. Power Reliability: NGCP put the Visayas grid on yellow alert Wednesday (4 p.m.–9 p.m.) due to forced outages and thin reserves. Agriculture & Food Security: The DA said delayed farm-to-market road projects will resume procurement and start bidding, with construction targeted after August; separate action saw BOC inspect and seize PHP35.4M worth of imported onions and garlic in Nueva Ecija tied to alleged smuggling. Housing Supply: DHSUD auditing of licenses to sell is delaying pre-selling projects, squeezing options for OFWs—over 10,000 units reportedly await LTS approval. Finance for SMEs: Discovery Capital secured a strategic credit facility with UnionBank to expand non-collateralized working capital for SMEs. Disaster & Local Governance: Rescuers in Angeles City raised the building-collapse death toll to 24; in Taytay, Rizal, dredging and desilting of creeks and rivers ramped up ahead of habagat. Tech & Industry: Makerlab will open a 3D printing experience hub at Ayala Malls Manila Bay on June 12, showcasing applications across healthcare, engineering, education and design.

Energy & FX Shock: MUFG warns the peso could slide to ₱64.50 per US$ if the Middle East conflict re-escalates and oil spikes, with “super” El Niño and Fed hawkishness adding pressure. Markets: PSEi surged past 5,900 as fuel prices rolled back and the peso firmed, pulling bargain hunters back. Banking Health: BSP data show banks’ bad loan ratio hit an 8-month high in April as NPLs rose amid tighter conditions from the Middle East war. Power Reliability: NGCP flagged possible rotating brownouts in Visayas as key coal plants stay offline; a yellow alert remains in place. Water Infrastructure: Maynilad targets Q3 2026 completion of a ₱955M Valenzuela pumping station/reservoir to boost storage and pressure. Digital Economy: DTI says the ASEAN-wide Digital Economy Framework Agreement is set to boost the Philippines’ digital economy value and investment. Trade & Agriculture: DA seeks to expand PH-Vietnam ag trade toward $20B while pushing for better contract enforcement, especially in rice. Flood Control Graft Case: Sandiganbayan questioned immunity claims tied to alleged DPWH flood-control “commitment” kickback scheme. Local Flood Prep: Taytay, Rizal stepped up creek and river dredging/desilting as habagat begins. Marine Conservation: BFAR-11 starts the 2026 Davao Gulf closed season, banning certain gear until Aug. 31. Waste-to-Energy Pushback: Groups oppose a ₱26.648B Smokey Mountain waste-to-energy project, citing environmental and community risks.

Waste-to-energy push under fire: Environmental groups and urban poor advocates renewed calls to stop a proposed P26.648B waste-to-energy incineration plant at Smokey Mountain, warning of health, displacement, and transparency risks. Pride and queer cinema: Christian Bables, Iñigo Pascual, and Elijah Canlas headline the Pride Month queer comedy-drama “Drags to Riches,” premiering June 24. Fisheries protection: BFAR-11 started the 2026 Davao Gulf closed season, banning specific commercial gear until Aug. 31 to protect small pelagic fish spawning. Local climate rules: Baguio now requires couples to plant “love trees” before getting marriage counseling certificates. Anti-graft update: Sandiganbayan questioned immunity issues in the flood control “commitment” scheme case tied to former DPWH officials; meanwhile Sen. Jinggoy Estrada surrendered and co-accused were admitted to jail. Energy and prices: DOE capped LPG price increase at P3.41/kg for June after new supply arrivals; Cebu also saw another round of fuel rollbacks. Trade and logistics: DHL Express and ASEAN-BAC signed an MoU to help MSMEs with digital logistics, resilience, and decarbonization. Food safety harmonisation: APFRAS summit in Seoul pushed for broader food safety regulatory harmonisation across APAC. Tech for consumers: Google expanded virtual try-on across key APAC markets including the Philippines. Agri market relief: A Benguet “rescue-buy” in Atok helped farmers sell nearly 80,000 kilos amid a vegetable price crash.

Anti-Corruption & Courts: Sen. Jinggoy Estrada has surrendered to the PNP-CIDG and is set to be detained at the New Quezon City Jail in Payatas after the Sandiganbayan issued a non-bailable plunder arrest warrant, alongside former DPWH chief Manuel Bonoan and several DPWH engineers. Fuel & Inflation Shield: The House is pushing the Kalinga Act to speed up government aid during oil price shocks, while the DOE announced a major fuel rollback this week and the BSP signaled it may take a stronger stance if inflation expectations stick. Power Reliability: DOE said Visayas supply should improve as key plants return, even as grid alerts continue and the agency reviews underperforming generators. Trade & Manufacturing: Philippines factory activity rebounded in May (PMI back above 50), and Cebu exports grew in early 2026 despite peso weakness. Agriculture & Supply Chains: JTI moved to buy more local tobacco leaf to absorb a glut, and Customs/NBI seized P35.4M in allegedly smuggled onions and garlic. Local Infrastructure: Cebu City is rethinking waste disposal after a deadly landfill collapse drove up hauling costs, while Zamboanga City approved a P75M small water impounding dam for El Niño-ready water storage. PH-Vietnam Ties: Marcos elevated relations with Vietnam to an Enhanced Strategic Partnership, with deals spanning trade, defense, maritime, agriculture, and people-to-people links.

Energy & Cost Relief: The DOE announced major pump price rollbacks effective June 2—diesel down at least ₱9.26/l, gasoline at least ₱4.76/l, and kerosene at least ₱10.86/l—while LPG is set to rise about ₱3.41/kg, easing pressure after last week’s global inventory-tightness-driven hikes. Climate Risk: PAGASA warned El Niño is likely to develop June to August with a 92% chance, potentially persisting into early 2027, and overlapping with Habagat rains—raising the odds of extreme weather and longer exposure to impacts. Weather Watch: Dangerous heat indices are forecast in 32 areas, with NAIA in Metro Manila expected to hit 42°C (danger range). Gov’t Digital Payments: Landbank will waive transaction fees for eligible QRPh person-to-government payments from June 1 to Dec. 31, covering items like real property taxes, business permits, and police clearances. PH–Vietnam Business & Security: Vietnam President To Lam’s state visit secured upgraded defense and digital transformation cooperation, plus maritime security and law-enforcement pacts. Manufacturing Pulse: S&P Global said PH manufacturing PMI returned to growth in May (50.8), though exports stayed weak and job shedding continued. Anti-Graft Update: Sandiganbayan ordered the arrest of Sen. Jinggoy Estrada in a non-bailable plunder case tied to the flood control scandal, with co-accused including former DPWH chief Manuel Bonoan.

Philippines–Vietnam State Visit: Vietnamese President Tô Lâm and First Lady Ngo Phuong Ly arrived in Manila for a two-day visit, with Marcos set to hold bilateral talks and witness signed agreements—covering trade, food security, defense and maritime cooperation, education, tourism, and people-to-people ties. Defense & Security: At Singapore’s Shangri-La Dialogue, US Defense Secretary Pete Hegseth urged Asian allies to boost defense spending and warned support could become more conditional; separate regional moves also include Malaysia’s launch of a framework to protect critical underwater infrastructure. Inflation & Food Costs: BSP estimates May inflation could hit 7.9%, driven by oil-linked transport costs, weaker peso, and higher rice/vegetable/meat prices; a CPBRD projection says poorer households may spend about ₱490 more monthly on rice due to fertilizer shocks. Energy & Grid: Grid strain continues as Visayas power crunch drags into June and more areas face outages/alerts. Transport & Procurement: DOTr seeks over ₱1B more for active transport to expand bike lanes; DBM adds EVs and cloud services to its green procurement eMarketplace. Logistics Electrification: DHL Express Philippines targets 70% electrified delivery fleet by 2030. Agriculture Exports: PH and Japan expand cooperation to boost agri exports and modernize farming, including horticulture plans. Legal/Enforcement: CA upheld an asset preservation order over P15.5M tied to alleged illegal drug “pass-through” accounts. Labor Oversight: DOLE pushes to expand labor inspectors, citing a shortage of those conducting actual workplace inspections.

ASEAN Digital Deal: Negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) are wrapped up, clearing the way for signing in November, with the pact set to boost cross-border digital trade, payments, cybersecurity, e-commerce and digital identity. Trade & Logistics: DHL Express targets double-digit shipment growth in the Philippines this year, banking on SMEs and its GoTrade program to train hundreds of exporters. AI in Finance: Citi says Philippine banks are still in AI exploration, but the gap with advanced markets can narrow fast as use cases move toward real deployment. Cyber for MSMEs: A practical email security blueprint urges Philippine MSMEs to treat inbox protection as the front line against business email compromise and AI-driven scams. Power Costs: Meralco backs government moves to lower electricity rates, arguing most charges reflect real generation and market conditions. Labor & Wages: Philexport warns a new Metro Manila minimum wage hike could squeeze exporters and micro enterprises amid inflation and weaker demand. Customs Crackdown: The Bureau of Customs intercepted suspected illegal drugs worth over P6.4M in unclaimed inbound parcels at NAIA/CMEC. Industry Pulse: Factory gate price growth in manufacturing eased in April as refined petroleum price increases slowed. Defense Cooperation: Japan and the US agreed to deepen security cooperation, including missile co-development, with Philippines named among regional partners.

Defense Diplomacy: The Philippines and New Zealand moved to accelerate defense cooperation, pushing for Senate ratification of a Status of Visiting Forces Agreement after talks at Singapore’s Shangri-La Dialogue. Japan Partnership: Marcos wrapped up a “highly productive” Japan state visit, upgrading ties to a Comprehensive Strategic Partnership and locking in new defense, maritime, energy and economic deals. Power & Connectivity: Sen. Loren Legarda convened agencies and utilities to diagnose recurring electricity and internet gaps in Antique and Aklan, aiming for coordinated upgrades. Housing Push: The 4PH program ramped up in the Visayas with new rental and ownership projects, while Pag-IBIG raised housing loan ceilings to ₱10M and outlined who qualifies. Inflation Watch: BSP projected May inflation at 7.1%–7.9% as rice, vegetables and meat prices rise and the peso weakens, partly offset by fuel and electricity rollbacks. Anti-Graft: A court ordered Sen. Jinggoy Estrada’s arrest over flood-control kickback allegations; he surrendered and posted bail. Trade/Logistics: The Bureau of Customs filed a complaint over abandoned balikbayan boxes worth over P30M in unpaid taxes and duties. Industrial Capacity: SteelAsia recruited repatriated OFWs to commission a structural steel sections mill in Batangas to cut imports. Energy/Agri Risks: Asian rice prices surged on war and weather threats, with El Niño risks flagged for output. Public Safety: Angeles City building-collapse rescue efforts intensified after detection of moving entities under rubble.

Anti-Corruption Crackdown: The Sandiganbayan ordered the arrest and travel ban of Sen. Jinggoy Estrada and former DPWH chief Manuel Bonoan over alleged flood-control kickbacks, with Estrada posting P90,000 bail as motions still hang over a separate plunder track. Local Governance & Disaster Aid: The Ombudsman suspended Catanduanes Vice Gov. Robert Fernandez and 11 SP members for alleged delays in releasing P30.5M typhoon aid, pending administrative proceedings. Power & Connectivity: Senate President Pro Tempore Loren Legarda pushed coordinated fixes for recurring electricity and internet problems in Antique and Aklan, bringing together DOE, NGCP, NEA, DICT, telcos, and electric co-ops. Energy & Labor: DOLE reverted to the standard five-day workweek starting June 1, while keeping energy-saving measures in place. Philippines–Japan Deals: Marcos’ Japan visit yielded about $3.4B in investment pledges and upgraded ties to a Comprehensive Strategic Partnership, with MOUs targeting smart-city and fintech/digital infrastructure. Climate & Food Security: A study warned that Super El Niño can destabilize fisheries and coastal livelihoods, calling for climate-adaptive fisheries management. SME Sustainability: Asean circular economy efforts will give SMEs a “circular business check” tool, piloted in the Philippines, Indonesia, and Thailand. Housing Rollout: Iloilo’s 4PH projects are set to benefit over 7,000 Ilonggos, including rental housing and condominium developments.

Energy & Work Policy: Dole will restore the standard five-day workweek starting June 1 after a compressed schedule used for energy saving amid Middle East-linked fuel and power pressures. Power Reliability: Metro Cebu braces for rotational brownouts again as the Visayas grid stays on yellow/red alerts, with supply tight during peak hours. Disaster & Construction Safety: Angeles City’s nine-story building collapse response continues as the death toll rises to six, with 14 still missing and rescue teams working under strict stability controls. Anti-Corruption: The Sandiganbayan issued arrest warrants and hold departure orders for Sen. Jinggoy Estrada and former DPWH chief Manuel Bonoan in a plunder/graft case tied to alleged flood control budget anomalies. PH-Japan Industry & Energy: President Marcos met Japan’s Kishida and JICA chief Tanaka to deepen cooperation on renewables, low-carbon tech, infrastructure, and energy resilience, while PH-Japan ties move toward a higher-tier strategic partnership and intelligence-sharing talks. Agribusiness: A pork producers’ group opposes a sharp rise in pork import allocations, warning it could derail local hog recovery from ASF. Tourism Payments: DOT and Mastercard roll out a cashless, data-driven upgrade to help MSME tourism players and steer demand to underserved destinations.

Philippines–Japan Upgrade: President Marcos and Japan’s PM Sanae Takaichi announced a move to a “Comprehensive Strategic Partnership,” with cooperation spanning defense, maritime security, energy resilience, decarbonization, and smart/digital sectors as South China Sea tensions persist. Anti-Corruption: The Ombudsman filed plunder and graft cases against Sen. Jinggoy Estrada over alleged P573M kickbacks tied to DPWH flood control projects; an arrest warrant is expected. Energy & Infrastructure: PNP is probing possible sabotage after the Ilijan–Tayabas power line in Batangas tripped, while NLEx schedules lane closures at Tulaoc Overpass in Pampanga for bridge demolition and DPWH rebuild. Disaster Response: Dole ordered cash assistance for qualified victims of the Angeles City building collapse; rescuers retrieved the fifth body after overnight extrication, with search still ongoing. Food Security: DA warned severe El Niño could cut rice output by up to 700,000 metric tons, prompting El Niño task force reconvening and mitigation steps. Local Industry & Jobs: ADB approved at least $50M for a Southeast Asia growth equity fund targeting mid-sized firms, including in the Philippines.

Japan-Philippines Security Boost: Japan and the Philippines are set to begin formal talks on a military intelligence-sharing pact (GSOMIA) and upgrade ties to a “comprehensive strategic partnership,” as leaders push deeper defense and energy cooperation amid China-linked maritime tensions. Japan Investment Push: President Marcos’ Japan visit secured about $3.4B in pledges from Japanese firms, aimed at expanding high-tech manufacturing and digital infrastructure and creating thousands of jobs. Power Reliability Watch: Metro Cebu may face rotational brownouts if the Visayas grid moves from yellow to red alert, as demand stays high and generating units remain under strain. El Niño Water Readiness: Manila Water says it’s ready for severe El Niño with diversified raw water sources and system measures to protect supply for millions of customers. Energy Policy Scrutiny: Lawmakers urged a review of DOE and ERC policies after power interruptions, arguing the focus shouldn’t be only on NGCP. Construction Safety Fallout: Angeles City’s nine-story building collapse death toll rose to five, with rescue and retrieval still ongoing and businesses near the site reporting shutdowns and losses. Anti-Graft Move: The Ombudsman filed plunder and graft cases against Sen. Jinggoy Estrada, with an arrest warrant expected. AI in Finance & Insurance: Skyro reported PHP 15.8B disbursed in 2025 and growth driven by AI credit scoring, while AIA Philippines launched an AI roleplay training platform for agents. Food & Social Protection: The House approved expanding the school feeding program to cover more grades and longer feeding days, with local sourcing requirements. Infrastructure Traffic Advisory: NLEX announced lane closures at Tulaoc Overpass in Pampanga from May 28 to June 4 for demolition and DPWH reconstruction. Environment & Permits: DENR said tree cutting for the SALEx Southern Access Link Expressway was temporarily suspended after concerns, pending further study.

Japan-Philippines Dealmaking: Marcos’ Japan state visit is set to deepen cooperation on defense, energy, and trade, with Japan also expected to help Manila boost oil reserves amid supply shocks. Energy & Power Governance: Lawmakers urged a review of DOE and ERC policies as they push back on blaming NGCP alone for recent power interruptions and rising costs. Water Security for Industry: Manila Water says it’s ready for severe El Niño with diversified raw water sources, including Upper Wawa and Tayabasan, plus leak response and recovery measures. Food Security & Nutrition: The House advanced a bill expanding the school feeding program into a national nutrition push, widening coverage and increasing feeding days. Rice Supply Operations: DA said emergency milling services are expanding NFA warehouse capacity to speed up affordable rice distribution and strengthen reserves. Gaming Oversight: PAGCOR launched a 24/7 problem gambling helpline and warned B2B gaming providers they could face suspension for non-compliance. Capital Markets & Inflation: BSP rate hikes are seen potentially reaching 5.5% by end-2026 as energy-driven inflation pressures persist. Construction Safety: Angeles City building collapse response continues as the death toll rose to five and retrieval operations go on. Digital Connectivity: CitizenWatch backs faster direct-to-cell satellite rollout to reach digitally disconnected communities. Fintech Regulation: Binance returns via the SEC StratBox sandbox partnership with BlockShoals.

Maritime Crackdown: The Philippine Navy’s Western Mindanao Naval Command and Naval Task Force 61 stopped two back-to-back cigarette smuggling attempts in Basilan and Sulu, seizing over P113M in undocumented foreign cigarettes in just two days. Consumer Protection: In Dagupan, the PNP-CIDG seized P6.4M worth of “not type-approved” cellphones and accessories, arresting two sellers. Gambling Safety: PAGCOR launched a 24/7 National Problem Gambling Helpline to help people and affected families get confidential counseling. Digital Connectivity: CitizenWatch backs faster direct-to-cell satellite rollout to reach digitally disconnected remote communities. Crypto Watch: Binance is back in PH via the SEC’s StratBox sandbox with BlockShoals. Energy & Inflation: BMI warns US-Iran war spillovers could keep oil and inflation pressure high in emerging markets. Politics & Justice: The Ombudsman moves ahead on plunder cases tied to the flood control scandal, with court orders and timelines advancing.

Building Safety Push: A “New Philippine Building Act” is now in the Senate after the Angeles City hotel collapse, with lawmakers citing repeated tragedies and calling for tougher rules on construction standards, inspections, and accountability. Power & Grid Reliability: NGCP told a House probe it can only transmit when the grid has power, while ERC is studying reserve policy tweaks to better handle demand peaks as El Niño nears and yellow/red alerts persist. El Niño Watch: PAGASA says Habagat may start by late May or early June, while a very strong El Niño looms—raising alarms for drought, floods, and food/energy pressure. Energy Costs: Banks warn of weaker peso and higher inflation; firms back tax and charge reviews on power bills, while ERC weighs changes to grid reserves. Consumer & Enforcement: PNP-CIDG seized over P6.4M in unlicensed, substandard cellphones in Dagupan; separate operations netted arrests in an illegal LPG refilling scheme in Bulacan. Diplomacy & Defense: President Marcos begins a four-day state visit to Japan, seeking new defense, trade, and energy deals. Tech & Telecom: Globe is rolling out Synchronoss Personal Cloud to 54M customers, while investors watch Pine Labs’ FY26 return to profit.