AGP Executive Report

AI Data Centers & Water Use: A proposed ₱20.3B, 50MW AI data center in Oton, Iloilo hit a wall when its Norwegian proponent abruptly walked out of a public consultation after residents pressed on how the project would draw and manage local water for cooling. Digital Safety for Kids: CitizenWatch Philippines urged lawmakers to protect minors online without “state parenting,” arguing for shared responsibility across families, schools, platforms, and government as Marcos flags harmful social media and AI-generated misinformation. Education & AI in Class: A journalism educator says she bans students from using AI tools during class and pushes handwritten work to make assignments “AI-proof,” while acknowledging students already use AI in everyday learning. EV Infrastructure: CarBEV broke ground in Pasay on the Philippines’ first fully electric power station for 500 BEVs daily, aiming to support the push for half of cars to be EVs by 2040. Waste-to-Energy Push: Marcos ordered the DOE to implement waste-to-energy within 18 months, with auction plans and higher capacity targets after monsoon “sea of trash.” Payments for SMEs: Visa and UMSI launched U Accept, letting small merchants take contactless card payments via smartphones without buying POS terminals. Flood Reality Check: A data scientist points to Habagat rainfall totals in Metro Manila as a reminder that flood control needs real infrastructure and accountability, not just spending. Food Security via Gardens: Sen. Francis Pangilinan filed a bill to institutionalize Gulayan sa Barangay at Paaralan, making community and school gardens a continuing national program to fight hunger, stunting, and malnutrition.

Prepaid Telecom Reform: Senator Loren Legarda filed the SULIT Load Act to cut default prepaid SMS/call/data rates that remain “stuck in the past,” while strengthening rules on unexpected load deductions, unclear promo pricing, and loss of prepaid value; Energy Regulation Watch: A Senate hearing spotlighted electricity “system loss” charges, arguing technical loss is unavoidable but theft, waste, and poor utility performance shouldn’t be treated the same—pushing for tighter Energy Regulatory Commission limits; Digital Safety for Kids: CitizenWatch Philippines urged lawmakers to protect children online without “state parenting,” warning against shifting accountability away from families as bills target minors’ social media use; Food Security via Gardens: Senator Francis Pangilinan filed the Gulayan sa Barangay at Paaralan Act to institutionalize community and school gardens to fight hunger, stunting, and malnutrition; EV Infrastructure Push: CarBEV broke ground on Pasay’s Power Station, aiming to serve 500 BEVs daily and support the push for EV adoption by 2040; Radioactive Steel Raid: Authorities rescued 174 workers at Davao Mighty Steel after PNRI detected radioactive isotopes in products and plant materials, with officials warning of substandard and hazardous steel entering the market.

Flood & Climate Impact: Habagat rains and thunderstorms forced in-person class suspensions for 8.4M learners across 8 regions, with thousands of classrooms damaged and DepEd estimating nearly ₱244M in cleanup and repairs. Public Safety & Materials: Authorities raided Davao Mighty Steel and found radioactive isotopes (including Uranium-238, Thorium-228/232, Radium-226) in production areas, while lawmakers and officials warned the public against using alleged substandard steel. Governance & Anti-Graft Tech: Marcos said he’s reducing excessive discretion in government and expanding digitalization to tighten safeguards over public funds. Digital Learning Access: House OK’d a bill to give higher-ed students free digital academic resources and campus Wi‑Fi via a National Academic Content Repository. AI at Work: Microsoft’s Work Trend Index says Filipinos are ready for AI, but organizations and systems still lag in enabling it. Health Tech: MakatiMed launched the first digital pathology scanner in PH and Southeast Asia to speed expert diagnosis and remote access. Space & Connectivity: Rocket Lab highlighted a movable “GHOST” launch base as satellite launch services and direct-to-device connectivity plans heat up. Regional Tech Policy: ASEAN economic officials advanced work on digital trade, MSME support, and a proposed semiconductor roadmap.

AI at Work: Microsoft Philippines’ 2026 Work Trend Index says Filipinos are ready for AI, but organizations still lag—highlighting stronger critical thinking and treating AI output as a starting point. Public Safety & Materials: PAOCC and NBI raided Davao Mighty Steel after tests found “radioactive, substandard” reinforcing bars; 174 workers were rescued as PNRI detected radioactive isotopes. Energy Planning: The DOE identified seven potential sites in five provinces for the country’s first nuclear power plants, clearing strict safety criteria and aiming for 1.4 GW within 12 years. Education Under Habagat: DepEd reported 8.4M learners affected by monsoon rains and cyclones, with thousands of classrooms damaged and hundreds used as evacuation centers; it estimates P235.6M for repairs and cleanup. Digital Learning Access: House Bill 9532 passed third reading, proposing free digital textbooks and high-speed campus Wi‑Fi via a national academic content repository. Flood Governance: Senate probes are being pushed after new potholes appeared on rehabilitated EDSA, while Cebu City still can’t recover a P199.3M flood-control advance from a contractor. Climate Risk: A study flags extreme heat as a growing killer risk, listing countries most vulnerable in coming years. Tech-Industry Push: Clark is positioning for advanced manufacturing and AI as it expands its economic zone footprint, while Pax Silica debates continue in Congress over jobs versus environmental and displacement concerns.

Habagat & Disaster Response: DepEd says it needs ₱235.586M for cleanup and minor repairs after southwest monsoon and two cyclones damaged 6,861 classrooms across 1,195 schools, with thousands of learners and staff affected and some classrooms used as evacuation centers. Infrastructure Accountability: Sen. Ping Lacson pushes a Senate probe into Edsa rehab after new potholes appeared, arguing the deterioration points to flaws in planning, design, construction, and road management. Household Economics: BSP data show the Saving Intention Index plunged to -0.7 in Q2 2026, signaling households were already less able to save before the rains and flooding hit. AI & Privacy Enforcement: The PNP will pursue people who generate and share deepfakes using real faces, citing NPC reminders that such acts can violate the Data Privacy Act. Cyber & Elections: Malacañang warns against “mind conditioning” from early election surveys after OCTA showed a tight 2028 hypothetical race. Nuclear Power Planning: DOE identifies seven potential nuclear plant sites in five provinces, saying they pass safety criteria aligned with IAEA standards. Blue Economy Funding: France’s AFD will provide €200M (about ₱14B) for marine ecosystem protection and blue economy development, targeting livelihoods for over 3M people. AI Readiness Gap: Capital Economics warns the Philippines is missing out on AI-driven gains, ranking near the bottom in workplace adoption and productivity impact. Agriculture Biosecurity: DA lifts Japan poultry import ban after bird flu risk is declared eliminated, resuming breeding stock and hatching egg shipments with safeguards. Digital Finance for MSMEs: MinBizCon highlights fintech partnerships and digital inclusion to expand MSME access to financing and payments, with GCash showcasing tools for Northern Mindanao. Luzon Economic Corridor Push: An inaugural LEC Investment Forum in September will bring international investors to scout projects in advanced manufacturing, digital connectivity, energy, transport, and logistics. Accessibility Compliance: NCDA urges strict enforcement of accessibility laws after it noted persistent barriers in public and private spaces.

AI & Cybersecurity: The PNP will pursue people who create or share AI deepfakes and misleading AI-made videos, after the National Privacy Commission warned that using a real person’s face or likeness violates the Data Privacy Act. Disaster & Climate Science: A new study links extreme habagat downpours to a “moisture conveyor belt” pattern that combines multiple weather systems, not just the monsoon or a cyclone alone. Digital Identity for Finance: Fintech groups back a BSP draft circular pushing banks and nonbanks to use the national ID as the main proof of identity for account opening and digital onboarding via PSA authentication services. Public Safety Tech: Manila says it has cleared evacuation centers after nearly a week of monsoon rains, while crews kept up cleanup and declogging. Medtech Regulation: HPO.TECH says it completed its early transition of hyperbaric chamber systems to the EU Medical Device Regulation (MDR). Transport Infrastructure: Marcos ordered agencies to speed up the long-delayed Sangley Point International Airport via a technical working group to streamline approvals. Agritech & Food Systems: A Filipino engineer’s rice seeder aims to cut labor bottlenecks for rice farmers, while Bukidnon restaurants turn food waste into organic fertilizer using black soldier flies. Energy & Industry Policy: PIDS urges tighter competition safeguards in power sector EPIRA amendments, citing heavy control of generation capacity by a few conglomerates. Research & Health: A Luzon flying fox GPS study maps long-distance nightly travel and repeated returns to feeding sites, informing conservation planning.

Cybersecurity & Critical Infrastructure: The House approved HB 9605, creating a National Cybersecurity Agency under the Office of the President to defend essential services from fraud, identity theft, data breaches, and ransomware. Smart Agriculture: The Department of Agriculture is piloting drone + AI mapping to spot pest and disease risks early, starting with banana farms in Davao del Norte and Davao de Oro. Waste & Flooding: MMDA and DPWH officials are calling the Baclaran River cleanup a “garbage crisis” after at least 500 tons of trash were hauled in three days, while groups warn waste-to-energy won’t fix plastic pollution’s root causes. Nature-based Flood Solutions: Sen. Loren Legarda pushes watershed and forest restoration, wetland rehab, and mangrove/seagrass recovery alongside engineered drainage. Seaweed Bioplastics R&D: NAST PHL urges more fundamental research and investment to turn seaweed into biodegradable plastics, leveraging the Philippines’ seaweed diversity. Local Tech for Waste: A Bukidnon restaurant uses black soldier fly larvae to convert food waste into fertilizers and animal feed. AI at Work: Microsoft’s Work Trend Index says Filipino workers are adopting AI agents faster than the global average, but still emphasize human judgment and quality control. Public Safety Tech: DOST-CAR and Bauko plan solar-powered LED streetlights with CCTV for safer, more resilient barangays. Economy Watch: Stocks extended gains as bargain hunting and earnings lifted sentiment, with the PSEi closing at 6,366.64.

AI for SMEs: DTI and Converge opened the DTI AI and Scale-Up Center in Makati to help startups and local firms adopt AI with demos, training, and consultations. Digital identity & inclusion: PLDT and Smart earned NCDA honors for accessibility initiatives, pushing more inclusive connectivity and tech for persons with disabilities. AI in finance ops: South Asialink Finance Corporation is deploying AI Rudder’s voice agent to boost collections efficiency through scalable, natural customer outreach. Floods, misinformation, and governance: MMDA said it will investigate recycled and AI-generated flood photos/videos after PNP warned the public about fake weather posts; Sen. Loren Legarda also urged nature-based flood solutions like watershed restoration, wetlands rehab, and mangrove protection alongside engineered drainage. Waste-to-energy push questioned: Oceana and BAN Toxics criticized continued focus on waste-to-energy, pointing to clogged waterways like the Redemptorist Water Channel as a sign of deeper plastic regulation failures. Tech in everyday life: HONOR launched the HONOR Robot Phone, billed as a smartphone with a motorized gimbal and ARRI Image Science for mobile production. Local business & infrastructure: Sultan Kudarat signed nearly ₱2.4B for farm-to-market roads to cut travel time and help coffee farmers move products. Policy watch: DBM projected PH debt could hit a record ₱21.479T by end-2027, driven by peso weakness and refinancing costs.

Budget & Resilience: Flood control funding is back in the proposed ₱7.2T 2027 national budget, with DPWH getting ₱644B and flood control at 16.17% of the total—while the DBM also flags peso depreciation and a record ₱21.479T debt projection for end-2027. AI & Chips Policy: Pax Silica in New Clark City keeps drawing heat: Sen. Raffy Tulfo calls for a Senate inquiry over environmental and community impacts, while Seipi backs the hub but asks for safeguards; meanwhile, BCDA says hyperscale data centers won’t locate there due to power constraints. Energy Targets: DOE chief Sharon Garin pushes for 121.3 GW by 2040, calling for major new solar, gas, and wind capacity and tighter checks on plant performance. Flood Control Accountability: A fishers’ group backs a probe into “unauthorized” Taguig reclamation in Laguna de Bay, arguing it’s disguised flood control that harms communities and the lake’s ecosystem. Digital Identity & Security: NIST 1:1 results show facial verification competition tightening, and the UK’s British Transport Police expands live facial recognition trials into London Underground stations. Local Tech & Business: Converge eyes a ₱2.5B New Clark City ICT project, and PhilWeb reports a sharp Q2 jump in digital gaming platform revenue and net income.

Pax Silica Scrutiny: Sen. Raffy Tulfo pushes for a Senate inquiry into the proposed Pax Silica semiconductor and AI hub in New Clark City, warning it could strain water, air, farmers’ livelihoods, and indigenous communities—while Seipi and Globe back the project but ask for guardrails. Power Costs: The ERC moves to cut electricity bills by removing VAT from system loss charges, reclassifying them as pass-through costs. Health Leadership Shake-up: Marcos appoints PhilHealth head Edwin Mercado as acting DOH secretary and names Beverly Ho to lead PhilHealth after Jose Pujalte’s short stint. Flood Impact & Accountability: DepEd reports nearly 4,000 classrooms damaged; Sen. Kiko Pangilinan demands a science-based national flood plan and full accounting of flood-control spending. AI Adoption Gap: A new report flags low AI uptake in retail and across the Philippines as a drag on GDP growth. AI for Startups: DTI and Converge launch an AI and Scale-Up Center to help firms integrate AI into operations. Cybersecurity Push: A bill advances toward creating a National Cybersecurity Agency under DICT. Digital Finance for MSMEs: DTI and ADVANCE.CBP set up an MSME credit information registry via Negosyo Centers. Marine Science: A rare Cuvier’s beaked whale is found dead in Cagayan.

Flood Governance Under Fire: Sen. Kiko Pangilinan and Ombudsman Remulla are pushing for a comprehensive, science-based national flood plan and a full accounting of flood-control spending as heavy habagat rains keep disrupting communities. Cebu Flood-Control Probe: Remulla inspected Cebu’s ₱60B flood projects and flagged possible anomalies, including large shares tied to a district and a single contractor, with DPWH Central Visayas in the spotlight. Education Disruption: DepEd reported nearly 4,000 classrooms damaged and thousands of learners affected by Maymay and habagat, while RA 12322 now lets DepEd choose the most effective curriculum approach instead of mandatory spiral progression. Health System Shake-Up: DOH Sec. Jose “Brix” Pujalte Jr. resigned after 28 days amid complaints over TB drug procurement and allegations of casino gambling; PhilHealth CEO Edwin Mercado was appointed. AI & Data Rules: BSP reiterated the need for strong governance for responsible AI use, while the NPC updated Privacy Impact Assessment rules, adding clearer requirements for AI, biometrics, children’s data, and cross-border transfers. Pax Silica Momentum: The Philippines’ Pax Silica push faces pressure to deliver, with the US ambassador warning other Asian countries could take over if the project stalls. Maritime & Environment: Protect VIP urged a constitutionally sound vessel monitoring system after the Supreme Court struck down a fisheries monitoring order, and BFAR reported a rare Cuvier’s beaked whale found dead in Cagayan. Tech Sector Signal: Globe said AI-driven data center demand is outpacing capacity, with more expansion planned through 2026.

Habagat Flood Fallout: A nine-day downpour across Luzon—driven by Tropical Storm Luis, Typhoon Maymay, and enhanced southwest monsoon—has killed at least 16 people, with Baguio hit hardest after a rain-drenched mountainside collapse; schools and offices shut as flooding and landslides continue. Water Reliability: Manila Water says it’s keeping non-revenue water below 15% (13.51% in June; 14.22% year-to-date) while repairing 221 disruptive mainline failures within 24 hours to protect 24/7 service during heavy rains. Flood-Control Accountability: Sen. Kiko Pangilinan and CEAP both push for tighter scrutiny of flood-control spending, arguing projects can’t be “on paper” while communities still flood; meanwhile, Ombudsman Remulla backs making government bids digitally recorded and publicly accessible. Education Policy Shift: Sen. Loren Legarda celebrates RA 12322, letting DepEd choose the most effective curricular approach instead of being locked into spiral progression. AI & Learning Rules: UP College of Law moves to curb gadgets and AI in core classes after seeing declines in students’ reasoning and argumentation. Semiconductor Ambitions: SEIPI backs Pax Silica’s AI-native hub in New Clark City, aiming to move PH beyond assembly toward higher-value manufacturing and R&D. EV Manufacturing: Mitsubishi plans hybrid EV production in Sta. Rosa, Laguna, targeting regional exports starting with pilot output mid-2027. Labor & Flex Work: Sen. Joel Villanueva files a Part-Time Employment Act to give part-time workers rights and benefits closer to full-time employees.

AI & Politics: A new Brazilian rule bars chatbots from ranking or steering voters, highlighting how AI can shape elections even without falsehoods. ASEAN Tech Diplomacy: President Marcos used ASEAN Day to push regional cooperation on conflicts, climate, economic uncertainty, and AI, with Manila set to host major ASEAN summits. Power Reliability: The DOE is still blamed for not having a clear fix as Visayas power supply alerts worsen, while analysts warn AI and data centers could strain the grid. Pax Silica & Semiconductors: Economists say the Pax Silica push could help the Philippines catch up in advanced tech as exports surge; SEIPI projects electronics exports could hit $53–$54B in 2026, driven by AI-linked semiconductor demand. Local Business Red Tape: Despite ease-of-doing-business reforms, many firms still face slow registration and closure due to fragmented systems and uneven digitalization. PPP Health Project Stalls: UP-PGH’s 300-bed cancer hospital PPP failed to attract bidders, delaying a key expansion of cancer care. Monsoon Disasters: Habagat flooding and landslides hit Northern Luzon, with Marcos monitoring dam releases and agencies on heightened alert. Finance & Rates: BSP is expected to deliver another rate hike as inflation stays above target even as growth slows to 2.3% in Q2. Animal Health Controls: The Philippines bans Middle East animal imports after FMD detections, aiming to protect livestock. Cyber/Comms Security: Taiwan warned a Chinese research vessel after it loitered over the Pacific Light Cable Network, underscoring undersea infrastructure risks.

Disaster Response: Habagat rains triggered landslides and flooding across Northern Luzon, with roads and bridges rendered impassable in parts of Cagayan, Abra, and Nueva Vizcaya as agencies stayed on heightened alert. Food & Agriculture Security: The Department of Agriculture temporarily banned live animal and certain animal product imports from seven FMD-hit economies in the Middle East and Europe to protect local livestock and food security. AI & Cybersecurity Policy: A House bill would set up a National Cybersecurity Agency and minimum standards for critical infrastructure protection, as lawmakers warn cyberattacks are now a permanent risk. Digital Economy & Skills: Microsoft says Southeast Asia’s AI users are more likely than global peers to produce new kinds of work, with “frontier professionals” rising faster. EV Manufacturing Push: Francisco Motors plans a $100M investment to build two electric jeepney models using locally produced components under the EV incentive program. Tech-Adjacent Economy: The Philippines is expected to retain UMIC status despite slower growth, but economists warn a prolonged slowdown could erode the buffer. Defense Tech Interest: BrahMos missile performance during India’s Operation Sindoor is drawing fresh international attention, including renewed interest in missile export deals involving the Philippines. Local Innovation & Resilience: PLDT, Smart, and PDRF turned over emergency “Ligtas Kits” to vulnerable barangays in Catanduanes to strengthen disaster communications and power during crises.

EV Incentives: Francisco Motors is pitching a $100M plan to build two electric jeepney models under the government’s EV incentive program, aiming for locally made components and ranges up to 250 km. Housing Policy: A backlog in Licenses to Sell is slowing condo and subdivision launches, with real estate groups warning it could curb housing supply and investment. AI & Energy Security: The Pax Silica AI hub debate keeps running as officials push ahead with site and governance talks, while separate analysis argues the project’s 3 GW power need will force a complex mix of renewables, storage, and LNG. Tobacco Tax Reform: Economists back risk-proportionate taxes on smoke-free nicotine products to raise revenue, reduce smoking, and cut illicit trade. Local Tech & Skills: Rappler’s Aries Rufo Fellows trained on public interest reporting, data work, and safer AI use—aimed at better local accountability. Disaster & Safety: Calbayog is advancing an airport safety ordinance to reduce hazards near runways, while monsoon rains continue to trigger landslides in parts of Luzon. Agritech & Trade: A Bohol food terminal breaks ground to help farmers and fisherfolk sell directly with cold storage, and Davao durian ships a trial batch to Oman. Cybercrime Watch: A Malaysia expert warns AI-enabled scams are escalating, stressing public vigilance.

Energy & Grid Losses: The Management Association of the Philippines urged tougher enforcement against power pilferage and nontechnical losses, saying consumers shouldn’t pay for utility inefficiencies, while backing stronger system-loss reforms and better network visibility. Economy Watch: Malacañang said the Philippines’ Q2 GDP slowdown to 2.3% is “only temporary,” pointing to faster spending and continued export growth. Flood Control Accountability: The Senate blue ribbon committee is turning over its flood works inquiry to the Ombudsman, with documents transferred after a closed-door meeting. Embedded Solar in Pampanga: Citicore Renewable Energy started work on a 41-MWp embedded solar project in Pampanga with 53 MWh battery storage, aiming to cut costs for Pelco I members by 2027. AI & Semiconductors Debate: Pax Silica’s development timeline is framed as 3–5 years, but lawmakers and critics continue pushing for Senate scrutiny over risks and national-interest questions. Digital Finance: Apple Pay officially launched in the Philippines, while BSP moves to require National ID authentication in bank KYC. Cyber & Scams: Reports highlight how scams are evolving with AI and social engineering, underscoring the need for stronger public awareness and defenses.