AGP Executive Report

Monetary Policy: BSP hiked rates by 25 bps to 5% for the third straight meeting, citing volatile oil, possible El Niño-driven food price pressure, and wage-adjustment risks—sending the PSEi lower. Flood Control & Resilience: UP-NOAH is pushing science-based upgrades, including a ₱1B push to expand hazard mapping and flood modeling, while Project NOAH proposes 150+ detention basins in Metro Manila to cut flood volumes. Agriculture Under Stress: DA pegged agri damage from Luis, Maymay, Neneng and habagat at ₱2.32B, hitting rice hardest; in Davao, the city council is planning solar irrigation for upland farms as heat risks rise. Budget & Spending Watch: July’s budget deficit widened to ₱106.3B as spending outpaced revenue; COA warned it still lacks nearly 400 field auditors. Energy Security: DOE plans the country’s first coal-blending terminal to reduce Indonesia dependency and diversify fuel risk. Digital Inclusion: PSA and GCash expanded National ID registration to boost verified e-wallet access for unbanked Filipinos. Governance & Compliance: MTRCB flagged a fake Permit to Exhibit for the political film “Tatsulok,” while DPWH says it purged duplicate projects in its 2027 plan after past flood-control controversies.

Power Supply Watch: NGCP kept the Visayas Grid on red and yellow alerts Aug. 27, citing 916.2 MW of unavailable capacity from forced outages and derated plants. Infrastructure Accountability: DPWH said it purged “duplicate projects” for its 2027 budget, cutting proposed projects to just over 11,000, while DPWH chief Vince Dizon called its Accessibility Law compliance “terrible” for gaps like missing sidewalks. Education Tech for Resilience: DepEd rolled out LIGTAS+, an AI multi-hazard tracking platform for 47,000+ public schools. Insurance & Finance: Allianz PNB Life reported nearly double new business sales and expects double-digit growth; non-life premiums rose 9.96% in H1 to P44.19B. Trade & Logistics: PSA data showed domestic trade value fell 21.9% in Q2 as sea freight volume dropped sharply. Food & Agriculture Pressure: Meat imports hit 1.02B kg in seven months, pushing local hog groups to warn of oversupply. Digital Economy & Policy: DTI said 93% of vape brands are unregistered; BSP said digital payment fees should be shouldered by merchants/billers, not consumers. Industry & Investment: PSE flagged Tampakan-linked Dominion merger as a backdoor listing under revised rules. Energy Transition: A 200-MW wind project in Northern Samar is nearing construction, targeting grid integration by 2028.

Renewable Power & Grid Reliability: ICSC said green power under the Feed-in Tariff saved electricity consumers about ₱99.2B in wholesale market costs over 2024-2025, while NGCP put Visayas under red alert (3-9 p.m.) due to tight supply. Power Infrastructure: Davao Light inaugurated the 10 MVA San Pedro Substation to boost reliability and capacity for the Anflo Industrial Estate and nearby communities. Inflation Watch: PSA data showed Davao City inflation rose to 6.8% in July and Davao del Sur to 9.6%, with different drivers—housing and utilities in the city, and food plus education among others in the province. Tax & Compliance: BIR extended tax filing, payment, and document deadlines for taxpayers in areas affected by the southwest monsoon, covering Aug. 10-16 deadlines to Aug. 17. Education & Tech for Resilience: DepEd launched LIGTAS+, an AI multi-hazard platform for 47,000+ public schools, and also said it completed 100% of 105 textbook titles for 2026 after a decade-long backlog. Industry & Infrastructure Governance: DENR admitted Pax Silica’s AI/advanced manufacturing hub lacks a clear project description and hasn’t yet gone through an EIA process, raising questions before environmental checks. Water & Wastewater Business: Manila Water Infratech Solutions rolled out O&M services, moving toward full lifecycle management for water and wastewater assets. Economy Outlook: Capital Economics warned of a “slow and bumpy” Philippine recovery, forecasting ~3% growth in 2026 amid corruption and Middle East-linked headwinds.

Critical Minerals Policy: President Marcos issued EO 122 to set a unified national framework for developing the critical minerals sector, pushing value-added processing and downstream industries; mining groups welcomed the shift. EV Manufacturing Push: Marcos said the government will support fully Filipino-made electric vehicles, including e-tricycles and jeepneys, with DOST and agencies assessing needed tech for local production. Semiconductor Hub Red Tape: ARTA said it will help streamline approvals for Pax Silica in New Clark City, while ACT Teachers Rep. Antonio Tinio demanded full disclosure of Pax Silica projects, warning about possible data centers beyond Clark. Power Reliability Watch: Visayas grid was placed on red/yellow alert due to tight supply and forced outages; in parallel, ERC extended deadlines for two transmission projects after land and permit delays. Energy Pricing & Supply: DOE plans to sell remaining government-procured LPG stocks to retailers (no new orders yet), while DOE and regulators continue efforts to cut non-technical system losses from consumers’ bills. Tax and Consumer Impact: DOF’s proposed higher excise taxes on sweetened beverages drew pushback from Mondelez, warning of effects on consumers and the food supply chain. Business Climate Signals: PEZA reported August investment approvals surged 334% to P64.57B, nearing its P300B target. Transport & Industry: House approved PAL’s 50-year franchise renewal on second reading; car sales rose slightly in July but stayed 2.5% down year-on-year. Public Safety & Health: House advanced a bill strengthening workers’ safety against climate hazards; youth groups urged action on vaping’s spread in schools. Infrastructure Oversight: COA told lawmakers it still faces a shortage of field auditors, calling it a “cause for concern.”

Budget Oversight: COA told lawmakers it still faces a near-400 field auditor shortfall, after DBM zeroed out COA’s proposed 2027 “capital outlay” despite plans for systems, building works and vehicles. Power Reliability: NGCP issued red/yellow alerts for the Visayas due to tight supply (about 149 MW gap at peak), while Ilocos Norte scheduled Aug. 27 outages for substation and 69-kV tie-line works. Energy Costs & Fuel: DOE said diesel rises P2.31/liter on Aug. 25, with gasoline and kerosene also up; it’s also nearly sold out crisis-era LPG at about P60/kg to avoid storage costs. Industrial Policy & Investment: PEZA approvals jumped 334% y/y in August to P64.57B, with manufacturing and IT-BPM leading; COMP said the critical minerals EO can support higher-value processing as Pax Silica ambitions move forward. Workplace Safety: House Bill 10559 advanced to strengthen OSH rules with climate-adaptive measures and tougher penalties for gross violations. Housing Demand Pressure: DHSUD said government targets won’t clear the 3.7M housing backlog by 2028 without stronger private-sector production. Grid & System Loss: ERC clarified Negros Electric Power was wrongly flagged as noncompliant on system loss limits after franchise transition rules.

Power Supply Watch: NGCP put the Visayas grid under red and yellow alerts on Aug. 25, with Tacloban City and parts of Leyte warned of possible temporary power interruptions as capacity lagged peak demand. Fuel & Transport Costs: The DOE raised diesel by P2.31/liter and gasoline by up to P1.08/liter starting Aug. 25, adding pressure on commuters and operators. Wage Push: Piston Cebu backed a proposed P1,200 daily minimum wage in Central Visayas as fuel hikes squeeze transport workers’ earnings. Flood Mitigation Compliance: Cebu City said only 4 of 65 developers met the Aug. 20 deadline to submit flood-mitigation plans and detention pond details. Agri Market Management: The DA plans an early-warning system to prevent vegetable gluts by tracking harvest timing, weather risks, and farm-gate prices. Green Lane Investments: BOI reported a slight July uptick in the “green lane” pipeline to P6.36T, driven mainly by renewable energy projects. Digital Infrastructure for Pax Silica: Stratbase urged faster fiber, backup connections, and data center buildout to support AI and advanced manufacturing ambitions in New Clark City. Insurance Growth: Life insurers’ premiums rose 17.91% to P229.98B in 1H 2026, with higher benefit payments and net income. Aviation & Connectivity: House approved PAL’s 50-year franchise renewal on second reading, supporting fleet upgrades and route expansion.

Food Security & Human Rights: A House subcommittee consolidated six bills to institutionalize the right to adequate food, with Speaker Bojie Dy III citing an estimated 7.5 million Filipinos facing involuntary hunger in 2025. Urban Farming & Agriculture: Quezon City partners with Agrigaia Tech to set up an urban farming demonstration site at Quezon City University, with women leading and training on hydroponics, aquaponics, and vertical farming. Aviation & Tourism: The House approved on second reading a bill renewing Philippine Airlines’ franchise for 50 years, aiming to support fleet modernization and route expansion. Water Infrastructure: Manila Water added 14,501 new connections in H1 2026, bringing East Zone service connections to 1.223M, backed by investments in alternative raw water sources. Digital Finance & National ID: Maya said it has integrated National ID eVerify into onboarding, showing how shared digital infrastructure and AI can speed up customer verification. Energy & Cost of Living: DOE announced fuel price hikes effective Aug. 25, with diesel up to ₱2.31/liter, as geopolitical tensions keep pump prices rising. Flood Response & Governance: Marcos blamed Bulacan’s unfinished flood-control projects for Region 3 flooding while also checking relief in Pampanga; Recto urged LGUs to tackle garbage disposal to reduce flood impacts. Power Reliability: NGCP reported an unscheduled Zambales power interruption due to a fault in a 69-kV line. Logistics Investment: UPS said its 2024-2028 global capex program now exceeds $2B, including a Clark hub opening in Q4 2026.

Flood Control Accountability: Malacañang urged LGUs to step up solid waste discipline as it studies shifting part of NTA to solid waste projects, after habagat rains showed how garbage worsened flooding. Disaster Impact: NDRRMC said 7.5M people were affected by Luis, Maymay, Neneng and habagat, with 29 deaths and P4.9B in damage. Power Reliability: NGCP raised red/yellow alerts over the Visayas grid on Aug. 24 due to tight supply and forced outages, warning of possible rotational brownouts. Energy Compliance: DOE said about 40 power generation plants may face suspension orders for failing to respond to show-cause actions tied to reliability reporting. Local Business & Tax: Cebu City Treasurer recommended per-event tax reductions for SM Arena instead of a five-year amusement tax exemption, citing fiscal sustainability. Education Safety Debate: Psychiatric groups asked DepEd to defer live-shooter drills, saying high-intensity simulations may cause lasting harm. Renewables Deals: First Gen will supply 5MW geothermal power to PNB Holdings properties in Pasay and Makati, supporting a transition to renewable electricity. Retail Expansion: Ayala Land signed lease deals to bring Makro to four mixed-use estates across Luzon. Digital Payments: BSP data showed PESONet and InstaPay transfers surged past ₱19T in the first seven months as fees were waived. Agriculture & Food: PSA reported chicken output hit a new Q2 record near 590,000 MT, up 4% year-on-year. Critical Minerals Policy Pushback: ACT Teachers Rep. Antonio Tinio criticized EO 122 on critical minerals as a “wholesale surrender” of ore wealth to foreigners. AI Readiness: World Bank warned weak, fragmented data systems could hold back the Philippines’ AI push. Maritime Incident: A tugboat intentionally grounded off Botolan, Zambales, later sank after salvage efforts, with all crew rescued.

Critical Minerals Policy: President Marcos approved EO 122, setting a framework for the critical minerals industry and pushing exploration, processing and higher-value investments—MinDA says it could turn Mindanao into a “strategic gateway” for the global clean-energy supply chain, while ACT Teachers Rep. Antonio Tinio calls it a “wholesale surrender” that may displace farmers and Indigenous communities. Flood Control Accountability: In Bulacan, Cabinet Sec. Benhur Abalos ordered jail for those behind substandard flood projects after inspections found damaged seawalls that failed to protect coastal barangays. School Safety Debate: The Philippine Psychiatric Association and child psychiatry group urged DepEd to defer nationwide live-shooter drills, warning of lasting psychological harm and citing lack of proof of improved safety outcomes. Energy Compliance Push: The Department of Energy is preparing to recommend suspension of about 40 diesel power plants for ignoring show-cause orders, with tougher rules and penalties in the works. Fisheries Legal Fight: The Office of the Solicitor General asked the Supreme Court to reverse a ruling that struck down round-the-clock monitoring of commercial fishing vessels, arguing it protects ordinary fishers’ sustainable livelihood. Agriculture Output: PSA data showed higher Q2 hog, chicken and dairy output, with hog production up and dairy production rising year-on-year. Tourism Connectivity: Palawan is leaning on Cebu’s air links to grow domestic and international arrivals, aiming to broaden beyond beach tourism. Disaster Update: NDRRMC reported 7.5 million people affected by multiple weather systems, with deaths at 29 and infrastructure damage at P4.9 billion.

Critical Minerals Push: President Marcos approved EO 122 to build a critical minerals industry, including a national exploration and mineral reservation program and moves to revive dormant permits while courting higher-value processing for batteries, electronics, and advanced manufacturing. Mining Industry Signal: The Chamber of Mines backed the framework, saying policy stability and transparent rules are key to attracting long-term capital. Fishing Oversight Fight: The Office of the Solicitor General asked the Supreme Court to reverse a ruling that blocked round-the-clock monitoring of commercial fishing vessels, arguing it should protect small fishers’ sustainable livelihoods. Flood-Ready Infrastructure: DPWH said it will use newer mountain technologies for erosion and landslide-prone areas in the Cordillera, with funds in the 2027 budget and quick response funding for repairs. Philippine-Japan Logistics: The Philippines and Japan’s defense logistics pact (ACSA) entered into force, enabling reciprocal supplies and services for exercises and disaster response. Health Under Flood Pressure: Leptospirosis cases hit 3,760 nationwide, with 88 localities under calamity declarations as rains continue. Power Costs Pressure: Senate President Gatchalian urged reforms to cut electricity bills, targeting system loss charges and generation transparency. Insurance Uptick: Insurance penetration rose to 1.96% in Q2 2026 as premiums climbed. OFW and Seafarer Returns: 46 OFWs from Kuwait and 17 Filipino seafarers repatriated after a projectile hit M/V Minoan Dignity. Customs Reform Praise: Business groups lauded the Bureau of Customs for anti-smuggling and trade facilitation reforms. EV Battery Swapping: Voltai plans to expand motorcycle battery-swapping stations starting 2027, aiming for about 1,000 over the medium term. Biosimilars Regulation: South Korea’s MFDS will co-host with WHO a biosimilar evaluation guidelines workshop with PH FDA participation.

Critical Minerals Push: The Marcos administration’s EO 122 sets a national policy framework for critical minerals, aiming to boost exploration, processing, downstream industries, and investment competitiveness while tightening environmental and community safeguards. Defense Logistics: The Philippines-Japan Acquisition and Cross-Servicing Agreement (ACSA) took effect, enabling AFP and Japan’s Self-Defense Forces to exchange supplies and services for joint exercises and disaster response. Retail Expansion: Makro Philippines secured four long-term land lease deals with Ayala Land for new wholesale sites across Mega Manila and Southern Luzon, including Cloverleaf, Arca South, Broadfield, and Evo City. Power Market Oversight: The ERC said it will tighten monitoring to curb market abuse amid concerns over concentrated power in a few players. Insurance Uptick: Insurance penetration inched up to 1.96% in Q2 2026 as life premiums rose, led by variable life products. Flood-Health Watch: Leptospirosis cases are rising after heavy rains, with San Lazaro Hospital reporting 50 cases and two deaths. Poverty Milestone: PSA reported poverty incidence fell to a record low 9.7% in 2025, dropping below 10% for the first time. EV Battery Swapping: Voltai, backed by AboitizPower, plans to expand motorcycle battery-swapping stations starting 2027, targeting about 1,000 over the medium term.

Mining & Indigenous Rights: Environmental and human rights groups condemned the arrest of three Kired IP leaders in Kasibu, Nueva Vizcaya, during talks at a mining barricade, saying charges were arbitrary and made without warrants. Disaster Response & Flooding: NDRRMC reported 88 localities under state of calamity due to habagat and cyclones, with Zambales and Bataan among the hardest hit; in Pampanga, the Pampanga River overflowed, flooding hundreds of thousands across dozens of villages. Power Reliability in Visayas: Metro Cebu’s prolonged power crisis is pushing remote workers and businesses to pay more for coworking and backup solutions, as brownouts and grid alerts persist. Credit & Investment Climate: Japan-based R&I affirmed the Philippines’ “A-” investment-grade rating with a stable outlook, citing resilient fundamentals and expected growth recovery in 2027. Energy Market Oversight: The ERC urged tighter monitoring to curb power market abuse amid high concentration of market power. Insurance Growth: Insurance penetration inched up to 1.96% in Q2 2026 as life premiums rose, led by variable life products. Agriculture & Trade: Iowa officials said US farm exports to the Philippines could expand as competition intensifies. Policy & Governance: A national land use law was urged as a long-term fix to recurring flooding, while ACT Teachers Rep. Tinio questioned large secret funds in the 2027 OP budget.

Flood Response & Public Safety: The enhanced southwest monsoon continues to batter Central Luzon and beyond, with 88 cities and towns under state of calamity as of Aug. 21, and Pampanga alone reporting 276 flooded villages affecting 307,879 families; Quezon City also sees a leptospirosis spike after floods, with cases up 138% (Aug. 5–18) and five deaths. Infrastructure for Resilience: Metro Manila is set to add 13 pumping stations to the MMDA’s 73 to speed drainage capacity, while lawmakers push for a National Land Use Act to tackle flooding beyond “localized” fixes. Power & Utilities: Visayan Electric raises residential rates by P0.06/kWh to P14.96 for August, citing tighter supply and higher WESM and transmission costs; NGCP also moves ahead with Mandaue transmission works after resident agreements. Industry & Trade: Cebu’s coconut sector urges value-adding and wider market access; DP World opens a Johor warehouse in a special economic zone to expand Southeast Asia logistics. Agriculture & Food Supply: Benguet vegetable prices remain under pressure as prolonged rains force premature harvests and spoilage. Business & Finance: Rating and Investment Information (R&I) affirms the Philippines’ “A-” investment-grade rating with stable outlook, while Fitch flags weaker growth as a hurdle to deficit narrowing. Energy/Mining Watch: Dominion Holdings charts a capital hike for Tampakan-linked moves, keeping investor attention on large-scale mining timelines.

Flood Control Push: President Marcos said Metro Manila will add 13 pumping stations to the MMDA’s 73, with four new sites in Quezon City (Doña Imelda, Tatalon, Roxas I and II) already under way, aiming for operations by end-2026 or early 2027 as habagat rains keep NCR drainage under strain. Disaster Toll in Bulacan: The Bulacan provincial board placed the province under a state of calamity after weeks of flooding, affecting 960,821 residents from 275,000 families and causing initial agri damage of over ₱130M. Food Supply Pressure: In Benguet, prolonged rains are forcing premature harvesting and downgrading quality, with cabbage prices collapsing to as low as ₱5–₱6 per kilo for lower grades. Business Outlook: The Management Association of the Philippines expects little rebound before year-end, with hopes shifting to 2027 amid weak growth and a soft peso. Semiconductor/AI Investment Drive: Executive Secretary Ralph Recto urged US firms to invest in semiconductors, electronics and critical minerals, pushing for technology transfer and local talent training—not just buying from the Philippines. Power Costs & Losses: NGCP reported transmission and ancillary service rates jumped, raising August bills, while PNP said fewer than 5% of electricity theft cases lead to convictions since 2022. Logistics Expansion: SM Warehouses turned over a new 40,000-sqm Pasig hub for Shopee partners SPX Express and Scommerce to speed last-mile delivery in Metro Manila. Fintech Lending: PNB extended a ₱1B credit facility to BillEase using the Personal Property Security Registry to secure loan receivables. Mining Moves: Dominion Holdings sought to increase authorized capital to ₱30B as it moves to bring Tampakan into the listed company via a merger. Cybersecurity Update: Origin Energy said up to 60 customers had full bank account numbers accessed in its July hack, after authorities traced the breach to a Manila call centre. Legal Fight: Romualdez lawyers filed a supplemental affidavit seeking dismissal of the plunder case, citing recantations and lack of forensic or documentary proof.

Power Costs & Grid Charges: NGCP data show transmission rates up 22.22% and ancillary service rates up 30.85% for July billing (felt in August), pushing higher bills for co-ops like FIBECO in Bukidnon. Flood Control Buildout: Malacañang and MMDA point to 39 shortlisted rain-catchment sites in Metro Manila, with detailed plans due end-August and targets for early operation next rainy season; separate reports also cite 13 new/upgraded pumping stations. Electricity Pricing Policy: Senate President Sherwin Gatchalian says VAT on electricity system loss charges can be removed via regulation under the EOPT Act, while arguing technical system losses should be borne by distribution utilities, not consumers. Accountability in Flood Projects: Palace says the probe into alleged anomalies in flood control projects will continue even after witness Orly Guteza’s recantation, stressing no “ghost” projects and pursuit of wrongdoing. Infrastructure Forensics: Sen. Panfilo Lacson urges civil engineers to inspect flood-damaged roads and bridges to identify design/implementation lapses and pursue prosecution. Electricity Theft Convictions: PNP says only 21 of 469 arrested for electricity pilferage/tampering since 2022 were convicted, drawing sharp criticism from Sen. Erwin Tulfo. Innovation & Exports: The Philippines ranks first in high-tech exports share, but NIC flags weaker research productivity and university-industry links as a drag. Business & Investment Push: Recto tells US firms to expand in semiconductors, electronics, and critical minerals—especially advanced packaging, R&D, and talent training. Market Watch: PSEi rebounds 1.3% to 6,238.46 as investors hunt bargains amid steadier currency and easing US Treasury yield fears. Agriculture Prices: PSA reports rice prices up 22.16% in early August, ahead of September harvest, with DA bracing for weaker palay output risks. Shipping Disruption: PPA cancels some sea trips in Batangas and Mindoro due to “no sail” orders from the Coast Guard amid Neneng and habagat.

Flood Control Push: Marcos says 30 underground rain-catchment sites are identified for Metro Manila, with detailed engineering due end-August and excavation to start soon; DPWH also plans a ~3-million-liter detention basin at Plaza Rajah Sulayman (Malate) and is eyeing a similar facility at SM Sucat in Parañaque. Budget & Accountability: Sen. Panfilo Lacson urges civil engineers’ groups to conduct forensic inspections of flood-damaged roads/bridges to pinpoint design or implementation lapses and push prosecutions; meanwhile, House budget scrutiny spotlights a big 2027 LGU allocation via the National Tax Allotment and calls out uneven execution. Food Prices & Harvest Risk: PSA reports early-Aug rice prices up to P49.61/kg, with DA warning of weaker palay harvest risks tied to El Niño. Power & Industry: Negros Power (Razon-led) pours P2.1B into distribution upgrades to cut system losses without rate hikes; PEZA approved Epson’s Batangas expansion to industrial robots, targeting operations by March 2027. Shipping Disruptions: Tropical Depression Neneng and habagat led to canceled ferry trips in Batangas and Mindoro, with “no sail” orders driving cancellations. Safety & Security: NBI probes whether the Ateneo de Zamboanga school shooting links to other school violence cases; separate reports highlight renewed calls to stop minors accessing firearms. Digital & Finance: ERC extends suspension of GEA-All charges for four more months to ease power costs; TransUnion says Filipinos’ credit perception index rose to 75/100, with e-wallets still the most held financial product.