AGP Executive Report

Sugar Industry Response: Stakeholders in Bacolod agreed to form a national ad hoc committee to coordinate a whole-of-government response to the worsening Red Striped Soft Shell Insect (RSSI) infestation, aiming for faster diagnostics, early detection, and transparent aid. Disaster Aid for Farmers: The DA released P177.67M in farm inputs for habagat and typhoons Luis and Maymay victims, including seeds, NFA palay-milled rice for LGUs, PCIC indemnification, and zero-interest SURE loans. Monsoon Disruptions: Zambales towns suspended face-to-face classes and shifted to alternative learning and work arrangements as flooding continues, while Masinloc declared a state of calamity. Labor & Wages: DOLE filed a motion for reconsideration to lift the Pasig court injunction blocking the P85 Metro Manila minimum wage increase, arguing labor-law procedures weren’t followed. Budget Scrutiny: Lawmakers flagged transparency risks in the 2027 budget, including special LGU funds that could be used as patronage tools. Power Reliability: NGCP put Visayas on red/yellow grid alerts due to low supply and plant outages, with DOE warning repairs may drag into September. Digital Payments Push: BSP reported QR Ph and other digital rails drove QR transactions to 64.7% of retail payments by volume in 2025, nearing the 70% 2028 target. Ube Industry Unification: DA-backed United Ube PH registered with the SEC to unify farmers, processors, traders, and exporters for bigger domestic and export market push. Fuel Costs: Local retailers set another round of fuel price hikes starting Tuesday, with kerosene up the most.

Power Reliability Watch: NGCP put the Visayas grid on red alert from 5 p.m. to 8 p.m. Monday, with yellow alerts before and after, citing low supply after two big coal plants were unavailable and limited Mindanao imports. Budget Oversight: As the House starts 2027 budget hearings, lawmakers and the Senate signal tighter scrutiny—especially on confidential and intelligence funds and flood-control spending—amid calls for transparency. Infrastructure Spending Under Scrutiny: DPWH is seeking about P644B for 2027, including major road programs and flood management, after the 2025 flood-control corruption scandal. Energy Market Rules: The ERC is reviewing Ramon Ang’s Lopez stake for possible affiliate/control issues that could affect power competition and ownership limits. Food & Farming Logistics: DA is pushing a Clark mega food hub with about P4B committed, aiming for partial operations before end-2027 to cut distribution costs. Agriculture Risk Protection: The House approved a stronger crop insurance bill expanding PCIC coverage for farmers and fisherfolk against calamities, diseases, pests, and more. Labor Rights: A Cebu BPO worker and labor leader plans to file an illegal dismissal complaint, alleging retaliation tied to union organizing and wage campaign. Tech & Industry: PLDT’s Vitro is scouting southern Luzon for a next 100-MW data center to serve AI and hyperscalers. Coconut Sector Push: PCA-backed planting targets in Antique aim to distribute 254,000 coconut seedlings for the 100-million goal by 2028.

Agriculture & Food Security: Benguet vegetable farmers in Tublay dumped Chinese cabbage and carrots along Labey-Lacamen Road as low prices and fewer buyers left them unable to cover transport to La Trinidad; heavy rains also hit production, threatening a major Luzon supply chain. Power Costs & Grid Stability: ERC suspended flawed Line Loss and Congestion Cost charges, with Visayas consumers expected to see lower rates and refunds; separately, NGCP said the Visayas grid could return to normal supply by Sept. 11 after 73 days of yellow/red alerts. Energy Infrastructure & Policy: DoE said Maharlika Investment Corp’s planned P19.7B investment in NGCP is hoped to close this year, while NGCP reported higher July ancillary service charges that will raise August transmission costs. Trade & Consumer Protection: DTI froze prices in calamity-hit parts of Bulacan and Cavite, and also in Capiz due to pest infestation; Meralco stepped up anti-theft enforcement alongside grid upgrades to cut system losses. Labor & Wages: FFW urged Marcos and DOLE to push NCR employers to honor the first tranche of the P85 wage hike despite a court suspension. Fisheries & Industry: Two fishers asked the Supreme Court to reconsider a ruling affecting municipal fisherfolk’s preferential use of municipal waters over commercial vessels. Public Services & Inclusion: A Mindanao Information–Serbisyo Caravan in Sulu brought national agencies for livelihood, health, insurance, licensing, and employment help. Security & Enforcement: Police seized P21M worth of smuggled cigarettes in Sipalay City, filing charges under multiple laws. Business & MSMEs: Women-led MSMEs in Cebu were urged to secure stronger buyer and supply-chain links beyond trade fairs, with digital tools to scale.

Wage Policy: Metro Manila’s P85 minimum wage rollout faces fresh friction as the Federation of Free Workers urged President Marcos and DOLE to push employers to honor the first tranche even after a Pasig court’s suspension order. Labor & Governance: A separate labor governance critique says TROs and status quo orders in Pasig and Navotas expose weaknesses in how wage rules are implemented, arguing courts are overstepping protections meant for the National Wages and Productivity Commission and regional boards. Food Security: Sen. Francis Pangilinan filed the Gulayan sa Barangay at Paaralan Act to institutionalize community and school gardens to tackle hunger, stunting, and malnutrition. Agribusiness: Batac City, Ilocos Norte distributed foliar fertilizers to 555 farmers to sustain high-value crops and manage rising input costs. Fisheries Rights: Fisherfolk filed a motion for reconsideration seeking to overturn a Supreme Court decision that they say removed municipal fisherfolk’s preferential use of municipal waters. Waste-to-Energy Push: Marcos ordered the DOE to implement waste-to-energy within 18 months after monsoon rains worsened Metro Manila’s “sea of trash,” with an auction set for Oct. 13. Digital Security: Baguio City’s BUILDPass building permit system was taken offline after a reported ransomware incident, prompting calls for investigation by cybersecurity and privacy agencies. AI Infrastructure: In Iloilo, a Norwegian proponent of a proposed Oton AI data center walked out during a public consultation amid concerns over water use and cooling systems. China Tensions: Defense Sec. Gilberto Teodoro rejected China’s criticism, calling it a “squid tactic” while demanding clarifications over the detention of nearly 100 Filipinos.

Radioactive Steel Probe: Authorities rescued 174 workers from Davao Mighty Steel after raids found radioactive isotopes (including Uranium-238, Thorium-228/232 and Radium-226) and other hazardous materials across production areas, with officials warning of risks from substandard or radioactive steel entering the market. Wage Hike Fight: TUCP renewed its push for a P200 legislated wage hike as Pasig court orders keep the NCR’s P85 wage increase suspended, extending uncertainty for workers and employers alike. Budget Watch 2027: The House will start deliberations on the P7.2T 2027 national budget next week, beginning with DBCC briefings and PAGCOR updates as Congress moves into appropriations mode. Power-to-Water Disruptions: Rotational brownouts in the Visayas are spilling into Metro Cebu’s water supply, forcing pumping stations offline and triggering low water pressure or dry taps. Cybersecurity in Cities: Digital advocates urged Baguio City and national agencies to investigate a reported ransomware incident that led to BUILDPass being taken offline amid claims of data theft. Food Security Push: A Senate bill seeks to institutionalize Gulayan sa Barangay at Paaralan to expand community and school gardens and strengthen local food security. Inflation Update: Bohol’s headline inflation eased to 6.7% in July as food and transport price increases slowed. EV/Auto Industry Signals: GAC Indonesia reported strong EV demand at GIIAS 2026, with customer feedback shaping product development for its AION lineup.

Industrial Safety & Enforcement: NBI and PAOCC confirmed radioactive hazards in Davao Mighty Steel Corp., after raids found radioactive isotopes in rebars and production materials, while separate Senate scrutiny of Chuanxing Steel in Pampanga focused on workers’ claims of unsafe conditions and injuries. Labor & Wages: TUCP renewed its push for a legislated P200 wage hike after a Pasig court again suspended the NCR P85 increase, keeping the wage dispute tied up in injunctions. Energy & Industry Policy: BCDA said the government won’t finance its role in the 1,600-hectare Pax Silica hub in New Clark City beyond providing land, as Marcos defended the project’s sovereignty and local processing goals. Maritime & Geopolitics: Manila’s “paper trail” move—depositing Scarborough Shoal baselines with the UN—adds a legal front to South China Sea tensions. Weather & Agriculture: Habagat rains and monsoon systems drove calamity declarations and heavy farm losses in parts of Luzon, while PCIC said it is processing claims for thousands of farmers. Finance & Markets: PSEi inched up on Wall Street gains and easing US inflation hopes; BSP also signaled less aggressive rate hikes amid weaker growth. Tourism & Transport: DOTr and DOT aligned on airport and seaport upgrades to boost connectivity and tourism, including runway extensions for more capacity.

Wage & Labor: The P85 Metro Manila wage hike is again stalled after a Pasig RTC preliminary injunction suspends NCR Wage Order No. 27, with TUCP urging workers to push the case up to the Supreme Court. Infrastructure & Roads: Sen. Ping Lacson wants a Senate probe into Edsa rehab after fresh potholes appeared, pointing to possible flaws in planning and engineering. Energy & Nuclear: The DOE has identified seven potential sites for the country’s first nuclear power plants, clearing them under strict safety criteria, as the government targets 1.4 GW within 12 years. Industry & Safety: NBI and PAOCC raided Davao Mighty Steel, rescuing 174 workers and seizing suspected radioactive and substandard rebars, after PNRI detected radioactive isotopes. Trade & Sovereignty: President Marcos said PH-China talks on joint oil and gas exploration have moved forward, while he also stressed foreign investors can’t exploit minerals without government approval amid Pax Silica concerns. Finance & Markets: Philippine stocks edged up to 6,297.30 as investors tracked softer US inflation and digested corporate earnings. Tourism & Transport: DOTr and DOT discussed airport and seaport upgrades to improve access to tourist destinations, including runway extensions in several regions. Waste & Health: Manila Anti-Incinerator Alliance criticized the renewed waste-to-energy push, saying it confuses garbage and flooding problems and should not replace drainage and flood-control fixes.

Minimum Wage & Labor: Pasig RTC Branch 152 extended a preliminary injunction suspending the NCR P85 daily minimum wage hike, with a P10B bond, after construction firms challenged the order and cited capacity-to-pay concerns. Disaster Impact on Agriculture: The DA pegged farm losses from Tropical Depressions Luis and Maymay plus the enhanced southwest monsoon at P689.66M, hitting 19,634 hectares and 21,115 farmers, with rice taking the biggest share. Power Market & Bills: The ERC said removing nontechnical system loss charges is feasible, noting distribution utilities’ current performance and the ability to adjust tariffs to fund anti-pilferage without shifting costs to consumers. Energy Security: NGCP placed the Mindanao grid under yellow alert due to thin operating reserves, warning of possible rotational brownouts if generation losses occur. Blue Economy Financing: France’s AFD approved €200M (about P14B) for marine ecosystem protection and blue economy development, targeting cleaner oceans, waste management, and livelihood support for millions. Investment & Industry Pipeline: The Luzon Economic Corridor Investment Forum is set for Sept. 10-11, with US-Japan-Philippines partners scouting projects in advanced manufacturing, energy, transport, and logistics. Food & Health Policy: Nestlé Philippines urged that any sugary drink tax hike be science-based, consultative, and consider affordability and nutrition impacts. Public Works Accountability: Sen. Lacson pushed for a Senate probe into Edsa rehabilitation after new potholes appeared, questioning planning, design, and road management. Trade & Agriculture Supplies: The DA lifted its temporary ban on poultry imports from Japan after bird flu-free status was declared, aiming to restore breeding stock access. Digital Finance for MSMEs: MinBizCon highlighted mobile banking and fintech partnerships to expand credit access for Mindanao’s largely informal agri economy. Foreign Affairs: DFA said it is verifying reports of over 100 Filipinos arrested in China and will extend consular assistance while calling for due process. Construction & Drugs: Cebu authorities arrested a construction worker in a buy-bust operation that seized 1.425 kg of suspected shabu worth about P9.69M.

Infrastructure Push: President Marcos orders agencies to fast-track the long-delayed Sangley Point International Airport in Cavite, aiming to decongest NAIA and streamline approvals. Budget Debate: Makabayan bloc rejects the 2027 National Expenditure Program, saying it favors foreign-funded infrastructure over social services as the NEP totals P7.2T. Labor & Wages: A Pasig RTC extends a preliminary injunction suspending the NCR P85 daily minimum wage hike, while labor groups push back to the Supreme Court. Power Costs & Regulation: The ERC says removing nontechnical system loss from power bills is feasible, and it also moves to fix recurring WESM line rental spikes affecting Visayas rates. Disaster & Food Supply: DA reports agricultural damage from Luis, Maymay and habagat at P689.66M; PNP vows zero tolerance vs profiteering as supply disruptions hit farmers. Transport Disruptions: Habagat-driven rough seas keep several ferry trips cancelled across Luzon. Digital Finance & Inclusion: Fintech groups back BSP plans to use the national ID for account opening and onboarding to curb scams and improve access. Energy Security: NGCP places Mindanao grid under yellow alert due to thin reserves, warning of possible rotational brownouts if conditions worsen.

Waste & Flood Control: President Marcos personally inspected Parañaque’s Redemptorist Water Channel after flash-flood trash piled up again, with nearly 400 tons cleared in three days—while critics say “waste-to-energy” won’t fix the plastic problem at the source. Power Reliability: NGCP placed the Visayas grid under red alert Aug. 13 as supply fell short, citing unavailable coal units and reduced imports—raising the risk of rotational brownouts. Public Works Accountability: Sen. Ping Lacson filed a Senate probe into EDSA rehabilitation after fresh potholes appeared on newly repaired stretches, questioning DPWH design and management. Minimum Wage Legal Fight: Labor groups and Akbayan asked the Supreme Court to junk Pasig RTC orders that suspended the ₱85 Metro Manila minimum wage increase. Renewables & Energy Investment: ACEN is injecting up to ₱1B into its Quezon North Wind Power Project construction, while Peza studies an LNG supply system for Calabarzon ecozones to keep power reliable and competitive. Agri Exports & Tech: DA shipped the Philippines’ first commercial cacao cargo to New Zealand, and the DA is piloting drone-and-AI tools to detect crop threats early. Business & Finance: SM Investments posted record H1 net income of ₱45.9B on resilient consumer spending; CREIT’s H1 income dipped slightly to ₱686M despite lease escalations.

Flood & disaster response: Cavite was placed under a state of calamity after monsoon rains intensified by “Luis” and “Maymay” battered 20 LGUs, with damage to agriculture and widespread incidents reported. Power costs & regulation: Sen. Mark Villar pushed to remove the 12% VAT on electricity system loss charges, arguing consumers shouldn’t pay tax for power they didn’t use. Metro Manila waste crisis: Marcos ordered the restoration of fuel funding for the Diokno pumping station after Baclaran River cleanup hauled hundreds of tons of trash, underscoring how garbage keeps clogging waterways. Wage hike legal fight: Labor groups asked the Supreme Court to lift Pasig RTC orders that delayed the P85 minimum wage increase in Metro Manila. Business & trade: DTI and Converge opened an AI and Scale-Up Center in Makati to help startups adopt AI tools; PH also moved to deepen trade with New Zealand via a joint economic commission targeting a 50% boost by 2030. Industry & agriculture: PhilFIDA expanded abaca farm survey mapping in Southern Leyte to support the fibercrop sector; Sultan Kudarat signed farm-to-market road funding to help farmers move coffee and other products. Defense & security: The Philippines said BrahMos missile deliveries from India are progressing, calling the system “credible deterrence” amid South China Sea tensions.

Power Crunch Watch: DOE begins initial assessments of Visayas power plants after five NGCP red alerts, with brownouts possible again in Cebu as forced outages and reduced Mindanao imports tighten supply. Budget & Infrastructure: Flood control funding is back in the proposed P7.2T 2027 national budget, with DPWH getting P644B and flood control set at 16.17% of the NEP. Energy Policy: DOE targets 121.3 GW by 2040 and orders checks on plant performance amid grid alerts; Meralco also flags an August rate dip tied to ERC-ordered refunds. Labor & Courts: Lawmakers ask the Supreme Court to review a Pasig court TRO halting the Metro Manila P85 minimum wage hike tranche. Agribusiness & Trade: DA moves to impose volume-based safeguard duties on certain meat and chicken curry imports, while also backing Cavite enoki expansion to cut import dependence. Retail & Consumer Brands: Ayala launches ACX Retail to bring more international brands, including Musinsa Standard’s first PH store in Glorietta. Business & Markets: PSEi rebounds on softer BSP outlook; Jollibee posts record Q2 profit as pricing and margin recovery offset costs. Disaster Impact: Landslides in Baguio and Atok, Benguet kill at least 13 as habagat rains continue.

Pax Silica Scrutiny: Sen. Raffy Tulfo urged a Senate inquiry into the proposed Pax Silica semiconductor and AI hub in New Clark City, warning it must not harm water, air, farmers’ livelihoods, or indigenous communities. Power Costs: The ERC moved to cut electricity bills by removing VAT from system loss charges, treating them as government-mandated pass-through costs, while warning against proposals that would scrap the charges outright. Budget Season: The Senate received the 2027 National Expenditure Program worth ₱7.2 trillion, with the House vowing “rigorous scrutiny” to ensure every peso delivers measurable benefits. Storm Impact on Food & Jobs: The DA reported ₱197.2M in agri damage from Luis, Maymay, and habagat affecting 7,989 farmers, as deaths from the weather system rose to 19. Flood Control Update: Marcos said Metro Manila dredging is working but “still not enough,” as more mitigation work continues. Labor & Social Policy: DepEd launched a Mindanao caravan for its Adopt-A-School Program digital platform to fund school safety upgrades. Energy Planning: The DOE said the country may need 121.3 GW by 2040 to meet demand and a 50% renewables target, pushing for faster project completion.

Monsoon Disruptions: Southwest monsoon “habagat” plus Tropical Cyclones Luis and Maymay left 359 passengers and 61 rolling cargoes stranded across 23 ports, with some areas still under no-sail rules even as Looc, Occidental Mindoro lifts its restriction at 1 a.m. Aug. 11. Disaster Toll: Deaths from the weather systems rose to 16, with PNP reporting 15 fatalities as rescue efforts continue. Flood Control Scrutiny: Cebu’s P60-billion flood control projects are now under Ombudsman review after persistent flooding, with Remulla probing design, execution, and possible corruption and lifestyle checks. Energy & Power Costs: Meralco is set to lower August bills after ERC-ordered refunds, while more firms join the retail electricity choice program—BonChon operator Scottland Food Group switching via EvoEnergi for 17 facilities. Gaming Slump: Pagcor reported gaming gross revenues fell 20.33% in Q2 to P88.13B, hit by inflation and Middle East-linked consumer weakness. Food & Agriculture Hit: DA said storm damage to agriculture reached P135.3M across five regions, and rice farms took major losses; BFAR is also investigating a fish kill in Lake Buhi, Camarines Sur. Industrial Push: AboitizPower signed an MoU with South Korea’s KHNP to explore nuclear deployment, while the Pax Silica AI/semiconductor hub faces pressure to keep momentum or risk losing the project to other Asian countries. Retail Watch: Retailers are banking on a 2026 H2 rebound as fuel prices and weak demand squeezed discretionary sales in early 2026. Markets: The PSEi inched down as investors stayed cautious after weak GDP data.

Water Reliability & Infrastructure: Manila Water says it kept non-revenue water below 15% (13.51% in June; 14.22% YTD) by repairing 221 disruptive mainline failures within 24 hours in H1 2026, supporting steadier 24/7 service despite heavy rains. Power Grid Watch: NGCP placed the Visayas grid on a three-hour yellow alert (5–8 p.m.) and later issued a red alert until 9 p.m., citing thin supply and reduced imports from Mindanao—raising the risk of brownouts. Energy Costs & Retail Power: Meralco begins ERC-ordered refunds in August, cutting typical bills by about P9 for 200 kWh, while more firms join retail electricity choice under the lower 100 kW threshold via suppliers like EvoEnergi. Weather Disruption: Habagat and cyclones Luis and Maymay left at least 15 deaths (reported) and stranded passengers, cargo, and vessels across multiple regions, with ports and ferry schedules affected. Industrial Expansion: Ayala’s ACX Retail launches as an execution platform for global brands in the Philippines, while Mitsubishi says it may export Philippine-made hybrids once local HEV production starts under EV incentives. Markets & Macro: PSEi closed nearly flat as investors weighed weak Q2 growth (2.3%) and Middle East uncertainty, with foreign selling continuing. Property & Retail Finance: AREIT agreed to acquire major malls and hotels in a ₱19.95B property-for-share and cash deal, pending approvals.

Monsoon & Flood Response: LLDA warned Laguna de Bay communities to brace for rising water levels as enhanced southwest monsoon rains continue, while NDRRMC reported at least eight deaths and nine injuries from habagat plus tropical cyclones Luis and Maymay, with more missing in parts of Luzon. Power & Energy Costs: NGCP issued a new yellow alert for the Visayas grid as forced outages and weaker Mindanao imports tighten reserves, and rooftop solar adoption is expected to push down spot prices by easing WESM demand; meanwhile DOE flagged another fuel rollback Aug. 11–17, with gasoline seen to drop by up to P4.88/liter. Business & Policy Moves: Marcos asked lawmakers to suspend RA 12001 real property valuation reforms to avoid added burdens, while DEPDev said red tape still frustrates business registration and closures despite EODB reforms; DOF also stepped up GOCC shutdown efforts, targeting 21 state firms to free funds. Industry & Trade: SEIPI projected electronics exports to hit $53–$54B in 2026, driven by AI-linked semiconductor demand, and Meralco trimmed its sales growth outlook as rooftop solar dampens grid demand. Food & Livestock: DA banned live animal imports from FMD-hit countries in the Middle East and Asia to protect local herds. Infrastructure: BCDA broke ground on a ₱172M SCTEX Hacienda Luisita interchange expansion to improve access to northern Luzon.