AGP Executive Report

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

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

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

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

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

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

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

Impeachment & Public Funds: The Senate impeachment trial of Vice President Sara Duterte pressed on as AFP Col. Manaros Boransing II testified that the Army received no regular or confidential funds from Duterte’s offices for DepEd-linked Youth Leadership Summit and IEC activities, while another officer said a certification used for liquidation was improper. Budget Transparency: Lawmakers questioned the Office of the President’s heavy confidential and intelligence funds in the 2027 budget, with Sen. Mark Villar also pushing to raise the income tax exemption ceiling to boost workers’ take-home pay. Food & Agriculture Infrastructure: The DA said the Philippines needs 10–12 mega food hubs, with five targeted for start-up in 2026 across Clark, Isabela and Pili, while also flagging that the 2027 farm-to-market road budget may be too small for the system’s needs. Power & Climate Stress: Lake levels in Lanao and the Pulangi Dam fell due to lack of rain, prompting grid alerts, as El Niño-linked heat and flooding risks continue to disrupt business and daily life. Transport Disruption: Flooding along NLEX left motorists stranded for hours; Sen. Joel Villanueva urged toll waivers or refunds and called for permanent flood solutions. Markets & Currency: The peso hit another record low near ₱62.4:$1 amid stronger US dollar and oil-price pressures, while the PSEi rebounded more than 2% on improving factory data. Corporate Moves: Jollibee is considering a Hong Kong listing for its international unit, and PNB Holdings reported a sharp H1 profit jump ahead of its planned market debut.

Impeachment Watch: Vice President Sara Duterte’s trial heads into its ninth week as the House prosecution plans to present AFP Col. Manaros Boransing II to testify on DepEd’s use of confidential funds tied to the Youth Leadership Summit, with another AFP officer expected to follow. Flood & Mobility: NLEX reported heavy traffic and temporary closures in Pampanga due to rising river water, while Malacañang suspended in-person work and classes in 15 Luzon provinces as habagat risk persists. Energy & Cost of Living: Fuel prices rolled back at the start of September, with diesel and kerosene down nearly P4 per liter, offering some relief after two weeks of hikes. Tax Administration: BIR chief Charlito Mendoza told the ECCP Tax Forum that reforms aim for fair, simple, predictable, and partnership-driven tax administration under the BIR DARES agenda. Markets & Currency: BSP data showed foreign portfolio “hot money” inflows shrank sharply in July, and MUFG flagged the peso as Asia’s weakest link despite BSP tightening. Infrastructure & Spending: DBM said cash utilization improved to 94.6% as of end-July, while a budget watchdog warned DPWH spending efficiency has deteriorated, leaving large unused appropriations. Trade & Retail: Retailers renewed calls to scrap the de minimis rule, warning tax-free imports under the P10,000 threshold tilt the playing field against local stores. Agriculture Logistics: DA launched bidding for three cold storage facilities worth P750M to cut postharvest losses and stabilize food supply. Water PPP: BCDA granted Maynilad and K-Water original proponent status for a P14.8B New Clark City water and wastewater project, boosting capacity for new investments.

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.