AGP Executive Report

Mindanao Earthquake Response: President Marcos will visit quake-hit areas in Mindanao and ordered DOH and DPWH to prioritize hospital inspections and safe patient areas; DOE says power restoration is ongoing and some facilities may resume operations Wednesday, while the Visayas grid will receive reduced Mindanao power imports. Infrastructure & Services: DPWH estimates earthquake damage at around P1 billion and is assessing roads, bridges, hospitals and schools; Supreme Court keeps court operations suspended in parts of Mindanao; DepEd deploys engineers as the number of affected schools rises to 8,642. Energy & Costs: DOE allows another round of fuel price adjustments starting Tuesday, with diesel and kerosene set to rise within ranges. Maritime & Trade: CU Lines opens a Turkey office to expand its trunk-and-feeder shipping network across Europe, Asia and Africa; ECS Group expands Asia air cargo with tech and sustainability focus. Security & Governance: Philippines lodges a diplomatic protest over a floating structure at Scarborough Shoal; PNP says it has leads on remaining fugitives in a Bulacan flood-control scam. Workforce & Compliance: DMW plans cases vs recruitment agencies accused of holding 206 OFW applicants in illegal, substandard accommodations. Cybersecurity: PhilSec 2026 returns June 30–July 1 with DICT, CICC, PNP-ACG, AFP and PCG backing.

Disaster Response & Education: A 7.8-magnitude quake off Sarangani, Mindanao killed at least 35 and injured 200+ as tsunami waves were reported; DepEd says 8,642 schools and 4.09M learners were affected, with engineers deployed and classes suspended in quake-hit areas. Public Safety & Infrastructure: The PNP mobilized 2,000+ personnel and opened 545 evacuation centers; malls in General Santos temporarily shut for safety checks. Energy & Cost Pressures: DOE said diesel and kerosene pump prices will rise again Tuesday under eased adjustment rules, while fuel volatility continues to worry Cebu’s growth plans amid limited local reserves. Industrial Policy & Investment: Marcos approved expansion of West Cebu Industrial Park ecozone by 64.7 hectares to bring total to about 629.35 ha, reinforcing PEZA-linked manufacturing pull. Trade & Enforcement: BOC Port of Clark seized P64.9M worth of shabu in three shipments. Retail & Power Markets: Retail electricity aggregation is gaining traction, with Cathay Land consolidating multiple sites under the DOE’s RAP to manage power costs more strategically. Workforce Development: DOLE will run “Trabaho Agad” job fairs nationwide from June 10–12, offering 95,000+ vacancies. Governance & Media: The House panel ordered agencies to submit positions after it flagged ABS-CBN blocktime deals for possible legal and competition issues.

Mindanao Earthquake Response: A powerful offshore 7.8 quake struck Sarangani at 7:37 a.m., triggering tsunami warnings and leaving at least 19 dead and 200+ injured, with General Santos among the hardest hit as buildings collapsed and infrastructure was damaged. Education Disruption: DepEd said about 6,224 schools across five Mindanao regions were affected, impacting 3.2M learners; classes were suspended nationwide in quake-hit areas while structural checks and engineers were deployed. Aftershocks & Safety Updates: Phivolcs reported multiple aftershocks and updated intensities; malls in General Santos temporarily closed for inspections. Customs Revenue Drive: 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. Industrial Expansion: Marcos ordered the expansion of the West Cebu Industrial Park ecozone to 629.35 hectares via Proclamation 1288, boosting Cebu’s manufacturing and shipbuilding hub. Anti-Corruption Case: Pacifico “Curlee” Discaya was arrested at the Senate over a Bulacan flood-control malversation case, with additional suspects facing warrants. Energy & Grid Recovery: DOE and NGCP worked to restore power in parts of Mindanao, with General Santos/Sarangani still hardest hit.

PEZA Investment Surge: PEZA approved P124.84B in investments in Jan–May, up 88% year-on-year, with 135 new and expansion projects expected to drive exports and 20,012 jobs. Inflation & Rates Watch: May inflation eased to 6.8% but stayed above target, keeping pressure on the BSP to keep rates higher; markets still face Middle East-driven uncertainty. Bank Lending Picks Up: BSP data showed bank lending grew 11.4% in April, the fastest in nine months, signaling steadier credit demand. Customs Crackdown on Smuggling: DA and BOC seized over P7M in smuggled carrots at the Port of Manila, hidden in noodle shipments, with cases filed for violations. Energy Transition Funding: AIIB is set to co-finance a $1B World Bank-backed program for PH energy transition, grid reforms, and water improvements. Automotive Demand Shift: Motorcycle sales rose 8.8% to 811,397 units in Jan–May as fuel prices stayed high. Agri Exports Expand: Mindanao MD2 pineapples shipped to the UAE, and the first commercial Philippine mango shipment reached Toronto, opening new export pathways. Local Environment Urgency: Cebu faced renewed calls to overhaul waste management as landfill strain and pollution risks mount. Trade & Compliance Modernization: BOC rolled out AEDS PLUS for exports from ecozones/free ports, tightening departure rules and requiring stakeholder registration.

Clean Energy Deal: Acwa Power Philippines and Emerging Power (EPI) of Nickel Asia signed a joint development agreement to pursue up to 5,000MW of renewable and gas-fired capacity, with a near-term push to join the government’s Green Energy Auction Program. Industrial Expansion: Acwa also advanced a 500-hectare New Clark City project with BCDA for a utility-scale solar PV plus battery energy storage facility, targeting up to 500MW. Aviation Costs: Airline chiefs at the IATA summit in Rio face a tougher recovery as Iran-linked fuel shocks and airspace disruptions collide with aircraft delivery delays, forcing carriers to keep older planes longer. Property & Malls: Cebu Landmasters named Franco Soberano as its new president and CEO as it navigates tighter approvals and higher costs; Megaworld Lifestyle Malls won multiple Retail Asia Awards, led by Lucky Chinatown as Mall of the Year in the Philippines. Agribusiness Exports: Davao fresh MD2 pineapples were shipped to the UAE, adding another export pathway for local growers. Banking & Trade Support: Hana Bank opened a Subic office to serve Korean firms tied to the shipbuilding push and expand services toward Clark. Power Reliability: Senate pro tempore Sherwin Gatchalian filed an inquiry into repeated NGCP red/yellow alerts and Luzon-Visayas power interruptions amid El Niño concerns. Consumer Watch: DTI said school supply prices are largely stable for the upcoming school year, with more items seeing cuts than increases. Public Safety: Angeles City building collapse death toll rose to 28 as authorities probe possible permit and construction compliance issues. Policy for Oil Shocks: The House approved the KALINGA bill, proposing a 15% windfall tax on oil firms during national emergencies and giving the President temporary VAT/excise suspension powers. Digital Finance Note: A new analysis highlights how the Philippines scaled digital payments without a super-app or CBDC, relying on interoperable rails.

Power Grid Oversight: Senate pro tempore Sherwin Gatchalian pushed for an inquiry into NGCP’s frequent red/yellow alerts and recent Luzon-Visayas power interruptions, warning El Niño could worsen the power-supply gap. Energy Regulation: The DOE intensified actions vs fuel retailers overpricing beyond allowable ranges, issuing show-cause orders in Visayas while saying supplies remain sufficient. Renewables Pipeline: PetroGreen’s Panitan 98.2MW solar farm in Capiz cleared an ECC, with agrivoltaics planned to support both power and farming; separate DTI moves seek stricter PS safety/quality certification for solar components. Food & Exports: DA eyes a jump in ube R&D budget to P93M and seeks geographic indication protection; meanwhile the first commercial batch of fresh Philippine carabao mangoes reached Canada, opening a new export pathway. Agriland Protection: Central Luzon groups launched the Save the Rice Granary Movement, calling for a two-year moratorium on land conversion permits to protect food security. Banking & Compliance: Chinabank named a new chief compliance and governance officer; EastWest expanded wealth management for affluent clients. Public Health & Youth: Youth groups marked World No Tobacco Day, calling for an immediate ban on vapes and e-cigarettes. Environment & Disaster: EMB condemned illegal dumping tied to Davao’s landfill shutdown; UNESCO added Sablayan’s Matibay na Bayan biosphere reserve to its World Network.

Waste & Local Governance: Cebu City opened the “Ecostation” at SRP to cut landfill-bound waste by up to 15 tons daily, using shredding and composting to turn refuse into resources like ecobricks. Public Health & Consumer Access: A Cebu City ordinance proposal would require pharmacies to provide real-time, branch-to-branch medicine inventory checks via public computer terminals. Food Security & Land Use: Central Luzon groups launched the Save the Rice Granary Movement, urging a two-year moratorium on land conversion permits to protect agricultural lands and ease the food security squeeze. Infrastructure & Disaster-Resilience: Northern Samar signed a Local Infrastructure Learning Hub with DILG and agencies to strengthen infrastructure auditing and disaster-ready project monitoring. Justice & Anti-Graft: A Bulacan court ordered the arrest of contractor Pacifico “Curlee” Discaya and 10 others in a ₱53.9M flood-control malversation case; Senate coordination for turnover to PNP is set for Monday. Energy & Transport: President Marcos inspected Maharlika Highway rehabilitation in Samar, targeting faster travel between Tacloban and Catbalogan. Sports & Tourism: Subic Bay’s IRONMAN weekend kicks off with international fields and the 10th anniversary of the 70.3 distance. Digital Safety: A new scam report says Filipinos are getting targeted nearly every two days, with fraud increasingly moving to social media and AI-enabled tactics.

Inflation Watch: Malacañang said May’s inflation easing to 6.8% from 7.2% shows early gains from the UPLIFT strategy, while warning El Niño and oil risks could still push prices up. Energy & Power Costs: The BIR exempted the Lifeline Subsidy and GEA-All fees from VAT to prevent double taxation and help lower electricity-bill pressure. Renewables Push: Ateneo researchers flagged three Visayas straits—San Bernardino, San Juanico, and Cebu—as top tidal power sites, adding to the country’s drive to cut fossil-fuel dependence. Climate Readiness for Industry: House Speaker Bojie Dy urged faster El Niño preparations as agriculture and food face high risk, with an 80% chance of development by Aug. Infrastructure for Logistics: Marcos inspected Maharlika Highway rehab in Samar, targeting travel time cuts that could boost farm and business delivery. Trade & Customs: BOC blocked P7.7M misdeclared agri shipments at Manila port, citing violations of customs and anti-agricultural smuggling rules. Business Climate: DTI reported business name registrations rose 19.69% in May, signaling continued enterprise activity. Governance & Justice: Acting Senate President Gatchalian said contractor Curlee Discaya will be turned over to DILG/PNP on Monday after a court arrest order tied to Bulacan flood control malversation allegations.

El Niño Preparedness: House Speaker Faustino “Bojie” Dy III urged government to act early as an 80% chance of El Niño forming by Aug. 2026 could bring below-normal rainfall and drought risks to farmers and food security. Inflation Watch: PSA data showed Philippine inflation eased to 6.8% in May 2026 as transport and food price pressures cooled, though electricity costs kept rising. Power Costs Accountability: Chel Diokno pushed Meralco to “clearly and intelligibly” explain electricity charges, warning Congress may step in if billing is excessive or poorly designed. Housing Permits in Cebu: DHSUD-7 denied claims of delays holding up about 10,000 housing units, saying only two Licenses to Sell applications are pending and near completion. Energy & Industry Moves: First Gen/EDC plans ₱25B to upgrade its Southern Negros geothermal plant, while Ateneo researchers flagged Visayas straits as promising tidal power sites. Trade, Smuggling & Compliance: BOC blocked ₱7.7M in misdeclared agricultural shipments at Manila port and moved to forfeit the goods. Infrastructure & Environment: Protesters and DENR halted tree-cutting for the SALEx Quirino Avenue segment after environmental groups raised alarms. Social Protection: SSS advanced the 2026 pension increase to June for eligible pensioners on record as of May 31, but new retirees and others will get it starting September. Anti-Graft Case: Ombudsman filed graft and malversation charges over a ₱53.9M Bulacan DPWH project involving Pacifico “Curlee” Discaya II and officials.

Energy Relief for Transport Workers: DSWD Mimaropa disbursed P6.845M to 1,369 service delivery riders (90.48% of target), giving P5,000 each to help offset fuel-cost shocks under the national energy emergency response. Agribusiness & Food Security: Sugar producers in Negros and Panay urged the DA/SRA to act fast against the red-striped soft scale insect spread, saying farm-level controls fail because pests move to nearby untreated fields. River Cleanup & Waste Management: DENR partnered with The Ocean Cleanup for a five-year Pasig River plastic interception and cleanup effort, pairing producer accountability with low-cost tech and data sharing. School Transport Safety: LTFRB reminded school transport operators to avoid overcrowding and ensure seatbelts as classes open June 8, with monitoring continuing through the school year. Power, Inflation, and Markets: Foreign banks expect Philippine inflation to rise further, keeping pressure on the BSP for possible rate hikes, while the PSEi slipped on profit-taking ahead of inflation data. Clean Energy Pipeline: ACWA Power Philippines and EPI signed to jointly explore up to 5,000 MW of renewable and gas-fired projects, targeting participation in DOE green auctions. Urban Farming Push: Manila relaunched the Luneta Urban Garden to boost food security via tech-based urban agriculture. Aviation Update: AirAsia denied claims of flight groundings, saying operations remain fully operational. Housing Rollout: Pag-IBIG and DHSUD turned over keys for Expanded 4PH homes in Lipa, continuing the Marcos administration’s push for accessible homeownership.

Energy & Power Security: President Marcos ordered energy officials to fix Visayas power supply and grid issues ASAP, citing repeated yellow/red alerts tied to forced outages and directing a performance review of NGCP deliverables. Renewables Compliance: The DOE filed a civil case to collect a P1.18B performance bond from Batangas Rep. Leandro Leviste’s Solar Philippines over an allegedly undelivered 120MW solar project. Infrastructure & Flood Control: DPWH officials vowed year-round dredging/desilting under Oplan Kontra Baha after inspecting works at the Pinacanauan-Cagayan river confluence to curb flooding. Governance & Anti-Graft: The Ombudsman filed graft and malversation charges over alleged anomalies in a P53.9M Bulacan flood control project, while Sen. Jinggoy Estrada’s arraignment was reset to June 30 amid motions to quash. Environment & Industry Safety: DENR revoked Sanjia Steel’s ECC after radioactive isotopes were found in imported scrap metals, and issued a cease-and-desist order. Climate & Food Costs: Reuters warned hot, dry weather and an expected severe El Niño are already disrupting crop planting across Asia, pushing up wheat and rice prices. Trade & Labor Tensions: China reportedly mulls curbs and stricter checks on undocumented Filipinos, with possible export restrictions floated. Business & Consumer Impact: OceanJet cut temporary fuel surcharges on select Cebu fast-craft routes as fuel prices eased.

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

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

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

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

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