AGP Executive Report

Independence Day & Governance: Vice President Sara Duterte warned that corruption “steals hope, freedom” and urged Filipinos to defend sovereignty not just from foreign threats but from “syndicate-like” misuse of public funds. Water Security: DENR is expanding low-cost community water refilling stations, with six already operating nationwide and 18 more being installed, aiming for 49 by year-end. Disaster Response: After the 7.8 quake off Mindanao, NDRRMC reported 86,135 affected families and 55 deaths, while Cebu City plans a weeklong donation drive (June 13-20) for quake-hit communities. West Philippine Sea Tensions: China barred Defense Secretary Gibo Teodoro and family from entering mainland China and banned business transactions with them, escalating the WPS standoff. Trade & Livelihoods: Negros Occidental urged urgent national action after the US banned Philippine blue swimming crab imports, threatening local jobs. Digital Finance Security: GCash will shift from SMS-based OTPs to in-app push-notification verification starting June 22 to curb phishing and fraud.

Philippines–China Tensions: China imposed sanctions on Defense Sec. Gilberto Teodoro Jr. and family, banning them from entering mainland China, Hong Kong and Macao and blocking Chinese entities from transacting with them, after Teodoro’s repeated criticism of Beijing’s West Philippine Sea actions. Disaster Response & Housing Relief: PCSO airlifted relief supplies and deployed patient transport vehicles to quake-hit Southern Mindanao, while Pag-IBIG offered a one-month housing loan payment moratorium and reminded borrowers to use housing loan insurance for repairs. Water & Climate Preparedness: Manila Water activated full habagat readiness measures as El Niño risk rises, strengthening monitoring, maintenance and response teams. Crypto Regulation: BSP said Binance and its local partner BlockShoals lack the required virtual asset service provider license, even as the firm tests under the StratBox sandbox. Energy & Power Costs: Meralco raised June 2026 billing rates amid grid strain and peso weakness, adding pressure to already tight household budgets. Trade & Agriculture: The US proposed expanding fresh pineapple access to more ports in the US after pest risk mitigation steps, potentially boosting Philippine exports. Markets: The PSEi fell as US-Iran strikes pushed oil prices higher and revived inflation worries. Housing Approvals: A real estate group urged DHSUD to speed up and disclose license-to-sell approvals, warning delays worsen the housing shortage. Renewables & Finance: MCC is set to consider an energy-sector reforms threshold program on June 24 as lenders line up more financing for Philippine energy initiatives. Regional Diplomacy: Marcos will host German President Frank-Walter Steinmeier for June 15–17 talks covering defense, maritime cooperation, trade, climate and renewable energy.

Earthquake Relief: The PCSO mobilized large-scale aid for quake-stricken Southern Mindanao, sending C-295 and C-130 flights from Villamor Air Base with food packs and patient transport vehicles, following its first 24-hour response via authorized agents. Quake Impact on Business & Services: DSWD rolled out P5,000 cash aid plus family food packs to about 4,000 displaced workers and residents in General Santos as businesses stayed shut; local chambers urged faster power restoration and road rehabilitation to restart commerce. Power Costs Hit Households: Meralco raised June electricity rates by ₱0.1488/kWh, citing higher generation charges from tight Luzon supply and red-alert conditions in May, translating to about ₱30 more for a typical 200 kWh home. Energy Transition & Solar Push: With power-price fears rising, solar adoption is accelerating as households and businesses look for long-term savings and resilience; Graphion also announced a solar EV charging hub rollout in Pampanga. Tax & Compliance: The BIR filed a tax evasion case vs former Bamban mayor Alice Guo over alleged unpaid taxes of about P1.008B (with surcharges and interest), after her Senate testimony. AI for MSMEs: Packworks reported AI inventory planning is lifting sari-sari store sales, with median revenue from top products up 79% and better stocking reducing out-of-stock issues. Maritime Tensions: Malacañang said Marcos will not allow any erosion of control over Bajo de Masinloc (Scarborough Shoal), emphasizing diplomatic and legal steps.

Mindanao Earthquake Response: President Marcos said quake victims’ families will get P50,000 each as the death toll rose to 45, with 487 injured and 17 missing, while transport officials rerouted ships to keep cargo and passenger flows moving. Disaster Recovery & Infrastructure: Davao’s DavSam Bridge is nearing 60% completion with a target finish in 2028, and the city’s building office ordered strict compliance for red- and yellow-tagged structures before re-occupancy. Public Health & Labor: DOLE ordered employers to register workers under PhilHealth’s Yakap primary care benefit, pushing workplace enrollment and access to clinics. Trade & Food Security: DA checked rice retailers for compliance with the imported rice price cap, while BOC flagged abandoned red onion shipments worth P86.6M from China. Banking & Markets: Fitch downgraded Philippine banks’ outlook to “deteriorating,” citing US-Iran war risks to oil-linked inflation and lending. Business & Jobs: CC-BPM added 60,000 jobs in 2025 as AI adoption grew, and M&S signed MAP as its new Philippines franchise partner, with stores set to reopen later in 2026. Legal & Accountability: DOJ filed fresh estafa and illegal recruitment charges over a Dubai overseas job scam involving a London-based Italian businessman and others.

Mindanao Earthquake Response: President Marcos said families of quake victims will get P50,000 each as the death toll rose to 45 with 487 injured and 17 missing, while LGUs and agencies push rehabilitation and trauma support. West Philippine Sea Tensions: The Philippines urged China to remove a floating platform at Scarborough (Panatag) Shoal, warning against turning it into a man-made island and alleging it may support unauthorized marine research. Digital Banking Expansion: Billease injected ₱500 million into its Rural Bank of Sta. Maria–Ilocos Sur, bringing total capital infusion to ₱1 billion to prepare for broader regulated digital banking services beyond consumer lending. Retail & Consumer Growth: Ayala Land is set to expand in Cebu with Ayala Malls Gatewalk (IKEA anchor) opening in December 2026, signaling continued mall-led demand in the Visayas. Labor Market Watch: PSA data showed unemployment easing to 4.7% in April, but underemployment jumped to 15.2%, pointing to pressure on workers despite job gains. Corporate & Hospitality Moves: Marriott launched AC Hotel by Marriott Manila in Ortigas, adding a new upscale brand presence in the business district. Accountability & Governance: The Ombudsman dismissed plunder, graft, and malversation complaints vs Executive Secretary Ralph Recto and former PhilHealth chief Emmanuel Ledesma over the P60B PhilHealth fund transfer.

Tax Relief for Quake Areas: The BIR extended to June 30, 2026 certain filing, payment and submission deadlines for taxpayers in RDO 110 (General Santos City and Sarangani) and RDO 111 (South Cotabato), covering June 8–29 deadlines tied to the Mindanao earthquake, with penalties, surcharges and interest waived if complied with by the new date. Ombudsman Update on PhilHealth Funds: The Ombudsman dismissed plunder, graft and malversation complaints vs Executive Secretary Ralph Recto and former PhilHealth chief Emmanuel Ledesma over the transfer of ₱60 billion in unused PhilHealth funds to the national treasury, citing lack of prima facie evidence. DOH Travel Scrutiny: A health workers’ group asked the Ombudsman to investigate Health Secretary Teodoro Herbosa and Undersecretary Albert Domingo for upgrading a state-funded trip to Switzerland to business class; Malacañang said Marcos will wait for findings before acting. Mindanao Quake Response: DOTr said General Santos Airport could resume commercial operations within a week after repairs, while the quake death toll and damage assessments continue to rise. Crypto Tax Reporting: The OECD said the Philippines will start automatic annual exchanges of crypto-asset transaction data under the CARF in 2028. Markets Watch: Local shares rebounded as oil eased and investors bought beaten-down stocks, but analysts warned the rally may stay fragile. Infrastructure & Business: San Miguel said the first runway of the ₱735-billion New Manila International Airport could be finished earlier than 2028, though the terminal and logistics center face delays. Energy Enforcement: The PNP will crack down on electricity theft with Meralco, targeting illegal connections and pilferage of power materials.

Mindanao Earthquake Response: The 7.8 quake that struck off Sarangani has killed at least 37 and injured about 456, with rescuers still searching for missing people as power restoration and damage assessments continue across key facilities, including General Santos airport and coal plants. Energy & Power Stability: The DOE said the Visayas grid will get reduced power imports from Mindanao after quake damage, while some generating units are targeted to restart within days and transmission repairs are ongoing. Local Governance & Aid: A Senate bloc led by Sherwin Gatchalian pledged one month of salary for quake victims, while LGUs and agencies mobilized relief and financial support. Aviation Disruption: General Santos Airport commercial flights were suspended until June 11 as authorities repair ceilings, cracks, and control tower wiring, aiming to resume operations within a week. Politics & Institutions: Malacañang said any special session call depends on the Senate first resolving its internal leadership impasse. Public Sector Integrity: A health workers’ group asked the Ombudsman to probe Health Secretary Ted Herbosa and an undersecretary over a state-funded business-class trip to Switzerland. Space & Tech: Marcos approved a satellite constellation under the MULA program, with testing in the UK and a possible launch as early as April 2027. Business & Trade: CU Lines opened a Turkey office to expand its trunk-and-feeder shipping network across Europe, Asia and Africa. Consumer & Travel: Singapore Airlines expanded Europe routes via Singapore, adding Madrid service from Oct. 26, 2026.

Energy & Inflation Watch: Diesel and kerosene prices are set to rise again starting June 9 as the DOE eases price-adjustment rules, with DOE ranges pointing to up to P5.77/liter for diesel and P8.10/liter for kerosene, while gasoline may swing either way. Regional Prices: Central Visayas inflation stayed at 10.8% in May, driven mainly by food (15.2%) and transport (21.9%). Power Procurement: Retail electricity aggregation is gaining traction as firms like Cathay Land consolidate multiple connection points under the DOE’s RAP to access more competitive retail power and better manage costs. Finance & Payments: The IMF warned Philippine retail transaction fees are higher than regional peers due to fragmented payment infrastructure, highlighting cross-settlement frictions between InstaPay and PESONet. Trade Policy Shock: The USTR proposed additional Section 301 tariffs of 10% to 12.5% on imports from 60 economies over forced-labor concerns; Malacañang says it opposes forced labor and is reviewing the findings. Labor Market: DOLE will roll out “Trabaho Agad” job fairs across 55 sites from June 10 to June 12, targeting 95,000+ vacancies. Disaster Response & Business Continuity: After a 7.8 quake hit Mindanao, malls in General Santos temporarily suspended operations for safety checks; PCSO and local governments mobilized aid, while insurers said losses are “unquantifiable” at this stage. Aviation Disruption: General Santos International Airport operations were temporarily suspended pending technical inspections. Digital Skills Gap: An ADB study found the Philippines has the lowest digital skills demand among six APAC economies, though the gap is narrowing. Retail Expansion: Marks & Spencer is returning to the Philippines via a new franchise deal with PT Mitra Adiperkasa, with a first store planned in Makati by end-2026.

Earthquake Response & Tsunami Risk: A 7.8-magnitude quake off Sarangani triggered tsunami warnings across parts of the region, killed at least 16 and injured 200+ as General Santos and nearby areas reported building damage and power disruptions; Cebu province approved P10M aid for General Santos while the Army and NGCP moved to restore services and assess transmission line damage. Senate Power Struggle: The Senate leadership impasse continues to stall confirmations and appointments, with Malacañang studying a possible special session; constitutional experts warn against premature Supreme Court moves and note potential legal exposure for senators involved in the June 4 blue-ribbon hearing. Customs Revenue Boost: Malacañang praised the Bureau of Customs for collecting P406.365B in Jan-May, exceeding its target and supporting priority programs amid energy and price shocks. Investment & Industry Push: Marcos expanded the West Cebu Industrial Park ecozone to 629.35 hectares, while PEZA approvals and the 2026 Strategic Investment Priority Plan aim to steer incentives through 2028. Monetary Policy Watch: Despite May inflation easing to 6.8%, banks expect BSP rate hikes to stay on the table, balancing price pressures against peso stability. Climate Finance Bottlenecks: PIDS said financing and institutional constraints are slowing Philippine climate resilience efforts despite strong public concern. Business & Consumer Finance: A push for open finance is framed as a way to improve fairer lending terms by letting credit systems see more of consumers’ real financial behavior.

Senate Gridlock: Acting Senate President Sherwin Gatchalian flagged delays in confirming eight Cabinet posts and about 160 military and foreign service promotions, saying the backlog is tied to inaction before the 20th Congress sine die adjournment. Monetary & FX Watch: BSP data showed gross international reserves fell to a 16-month low of about $104B end-May as debt payments, lower gold prices, and FX operations weighed on buffers. Inflation & Rates: May inflation eased to 6.8% but BSP signaled an elevated inflation path; MUFG and UOB expect further rate hikes, with borrowing costs likely to stay tight. Public Finance: NG debt service jumped 12.1% in April to P314.9B as amortization and interest payments rose. Capital Markets: SEC streamlined securities lending by shifting key administrative steps to the PSE, cutting processing time and fees. Trade & Customs: BOC rolled out an automated export tracking system for ecozones/free ports, requiring stakeholder registration and tighter export departure timing. Business Growth: PEZA investment approvals surged 88% to P124.84B in Jan-May, with projected exports and jobs rising sharply. Energy Transition Funding: AIIB is set to co-finance a $1B energy transition and climate resilience package with the World Bank, targeting reforms in power markets and water. Local Economy & Services: DepEd rolled out SY 2026-2027 reforms, while Cebu faced an urgent waste management crisis ahead of 2030.

Clean Energy Deal: Acwa Power Philippines and Emerging Power (EPI) of Nickel Asia ink a joint development agreement to pursue up to 5,000MW of renewable and gas-fired capacity, with a near-term push to join the Green Energy Auction Program. Energy Infrastructure: Acwa also signed a lease with BCDA for a 500-hectare New Clark City site for a utility-scale solar-plus-battery project, positioning the hub for semiconductors and advanced manufacturing. Aviation & Tourism: Philippine Airlines received an invitation to join the Oneworld Alliance as its 16th member, aiming to boost passenger traffic and global connectivity. Retail & Property: Megaworld Lifestyle Malls bagged four wins at the 2026 Retail Asia Awards, including Mall of the Year in the Philippines for Lucky Chinatown. Agribusiness Exports: Davao fresh MD2 pineapples were exported to the UAE, expanding market access for local growers. Trade & Consumer Watch: DTI said school supply prices are mostly stable, with more items cutting prices than raising them. Maritime Tensions: Taiwan condemned China’s “law enforcement operation” east of the island and deployed patrol vessels after four Chinese ships were detected. Public Safety: Police uncovered a “secret warehouse” smuggling operation in GenSan area, seizing smuggled cigarettes worth about P1.1M. Politics & Courts: House prosecutors said Senate leadership turmoil won’t affect their case in VP Sara Duterte’s July 6 impeachment trial. Corporate Leadership: Cebu Landmasters named Franco Soberano as president and CEO as it navigates tougher approvals and costs.

Philippine Airlines joins oneworld: PAL will become the alliance’s 16th member, adding 31 destinations and boosting Asia-Pacific connectivity after its post-COVID turnaround and A350-1000 long-haul performance. NAIA premium lounge expansion: Seven airlines are now co-sharing the First Meridian Lounge at NAIA Terminal 3, aiming to improve passenger experience with a common-use setup. Inflation & rates watch: May inflation eased to 6.8% but core inflation rose to 4.1%, keeping another BSP rate hike “on the table” for economists. Power reliability probe: Senate President pro tempore Sherwin Gatchalian filed a resolution into NGCP’s frequent red/yellow alerts and Luzon/Visayas power interruptions, warning El Niño could worsen supply gaps. Senate leadership legality dispute: Loren Legarda questioned the constitutionality of Senate officer changes, arguing only 12 senators were present for votes. Wealth management push: EastWest expands Priority Banking wealth services as AUM hits P120B and targets more Priority centers. SME lending boost: Discovery Capital secured a UnionBank credit line to expand non-collateralized working capital loans for small businesses. Health support rollout: PhilHealth says 2,026 GAMOT facilities can provide up to P20,000 in free essential medicines yearly. Agri exports milestone: First commercial shipment of fresh Philippine carabao mangoes arrives in Canada via PAL Cargo, opening a new export pathway. Investment promotion update: BOI-approved investments fell 48% to P58.2B in Q1 as both foreign and local commitments declined. Solar quality regulation: DTI proposes mandatory Philippine Standards safety/quality certification for solar components to prevent substandard imports. Digital payments momentum: BancNet plans future-ready upgrades for cross-border interoperability and mobile-based payments after 2025 transaction volumes more than doubled. Energy security planning: DOE explores funding options for a strategic oil reserve without drawing from the national budget. Wildlife enforcement: DENR recovered 53 wildlife species in Sarangani, including vulnerable white-bellied sea eagles, after intelligence-led operations. Sustainability at community level: GSMI’s BOTEful Philippines hit 70,000 used bottles collected in Palawan in six months, supporting reuse and recycling.

Impeachment Watch: Bicol Saro Rep. Terry Ridon said House prosecutors’ confidence in convicting VP Sara Duterte rests on evidence, not Senate leadership changes, as the Senate leadership fight continues. Senate Gridlock: Rival claims over Senate leadership after the June 3 reorganization are still disrupting work, with Malacañang recognizing Sherwin Gatchalian while Alan Peter Cayetano contests. Anti-Graft Cases: A Bulacan court ordered the arrest of contractor Pacifico “Curlee” Discaya II and 10 others in a ₱53.9M flood-control malversation case, while the Senate is coordinating his transfer to the PNP. Infrastructure & Mobility: President Marcos inspected Maharlika Highway rehab in Samar, targeting faster travel times, while Cebu Province launched “Tabang Pambyahe” to subsidize bus services. Local Economy & Services: Cebu City opened the Ecostation to cut landfill-bound waste by up to 15 tons daily, and is considering an ordinance for real-time pharmacy medicine inventory access. Food & Agriculture: Central Luzon groups launched the Save the Rice Granary Movement, calling for a two-year moratorium on land conversion permits to protect food security. Trade & Travel: Guam and CNMI renewed their push to include the Philippines in a visa waiver program to boost regional tourism and connectivity. Digital & Consumer Safety: A new scam report says Filipinos are being targeted frequently, with social media and AI-driven fraud tactics rising.

Senate/Rule of Law: Acting Senate President Sherwin Gatchalian said DILG has coordinated with the Senate to transfer detained contractor Curlee Discaya to the PNP on Monday after a local court order. Inflation & Livelihoods: Malacañang pointed to May inflation easing to 6.8% (from 7.2% in April) as Uplift measures start to bite, while warning risks remain from oil and possible El Niño. Infrastructure & Growth: President Marcos inspected Maharlika Highway rehabilitation in Samar, targeting travel time between Tacloban and Catbalogan to drop from 3 hours to 45 minutes by August, with a rehab cost of at least P16B. Social Security: SSS said new retirement, disability, and survivor pensioners won’t get the 2026 pension increase until September; only those on record as of May 31 get the June rollout. Business Climate: DTI reported business name registrations rose 19.69% in May to 79,165, led by wholesale/retail and accommodation/food. Trade & Food Security: AmCham warned expanded pork import quota rules could disrupt supply chains and retail prices. Energy Transition: A renewable energy sector outlook projects 8.06% CAGR growth to 2034, driven by the DOE’s Green Energy Auction Program. Housing: DHSUD and Pag-IBIG turned over Lipa houses under Expanded 4PH, continuing the push for accessible homeownership.

Senate Quorum Challenge: A high school teacher asked the Supreme Court to uphold the legality of the June 3 Senate session where quorum was declared with 12 senators, citing the Avelino v. Cuenco ruling and arguing the chamber’s actions should stand. Power Bills Scrutiny: Lawmakers led by Chel Diokno urged Meralco to “clearly and intelligibly” explain its charges and pushed for a congressional probe into electricity subsidies and fees that hit consumers. Inflation Watch: Philippine inflation eased to 6.8% in May, but economists still expect a rate hike as price pressures remain sticky. Pension Update: SSS will not extend the June pension increase to new retirement/disability/survivor pensioners; eligibility is tied to the May 31 cutoff, with later beneficiaries getting the hike in September. Housing Permits in Cebu: DHSUD-7 denied claims of widespread delays in Licenses to Sell, saying only two pending applications are in late processing and won’t materially affect supply. Water Operations in Bulacan: Metro Pacific Water was named interim operator for San Jose del Monte’s water district after service interruptions under PrimeWater. Energy & Industry: First Gen/EDC plans a P25B geothermal upgrade in Negros to boost long-term steam supply. Transport Aid: DSWD cash assistance reached thousands of PUJ and delivery riders in Calabarzon and Mimaropa to cushion fuel-price impacts. Environment & Enforcement: DENR ordered closure of a Misamis Oriental steel plant after radioactive materials were found in scrap inputs; meanwhile, groups protested tree-cutting for the SALEX Southern Access Link in Manila. Digital & Consumer Safety: Globe trained 440+ youth in Iloilo and Negros on cybersecurity and online safety; NBI also raided an alleged 20-year illegal online collection agency in Quezon City, arresting 26.

Public Transport Relief: DSWD said 206,633 PUV drivers in Calabarzon (including tricycle, jeepney and delivery riders) received ₱5,000 each as of June 2 to cushion fuel-price shocks, with payouts continuing and beneficiaries told to follow official schedules. More Cash Aid: In Mimaropa, DSWD disbursed ₱6.845M to 1,369 service delivery riders (90.48% of target) under the ₱5,000 emergency support tied to the Middle East-driven energy emergency. Senate Quorum Fight: The Integrated Bar of the Philippines backed the June 3 Senate session as “lawful and valid,” citing the Avelino v. Cuenco doctrine that 12 senators can form quorum when full attendance isn’t possible—amid an ongoing leadership standoff. Blue Ribbon Clash: Sen. Alan Peter Cayetano pushed ahead with a blue ribbon hearing on flood control despite the dispute, warning Senate staff that blocking resource persons could lead to punishment. Flood Control Graft Case: The Ombudsman filed graft and malversation raps over a ₱53.9M Bulacan flood control project against contractor couple Pacifico and Cezarah Discaya and several DPWH officials. Cybercrime Crackdown: The NBI raided an alleged illegal online collection agency in Quezon City, arresting 26 people tied to intimidation and alleged double-charging. Energy & Inflation Watch: Foreign banks expect Philippine inflation to rise further in May, leaving room for more BSP rate hikes. Energy Security Push: DENR partnered with The Ocean Cleanup to remove floating plastic waste from the Pasig River using interception systems and producer accountability. Aviation Update: AirAsia Group denied reports of grounding, saying flights remain operational while it settles CAAP-related obligations. Food Security in Cities: Manila relaunched the Luneta Urban Garden to boost urban farming and food security through tech-enabled agriculture. UN Security Council: The Philippines lost its UNSC bid to Kyrgyzstan, with the vote reflecting international criticism over human rights concerns.