AGP Executive Report

Energy Policy & Power Costs: Lawmakers urged a “measured review” of the EPIRA system loss charge after President Marcos Jr. ordered its removal, arguing consumers shouldn’t pay for utility inefficiencies and aging infrastructure. Climate-Smart Forestry: DENR will open 1.18 million hectares of forest lands to climate-smart investments, projecting up to ₱38T in value over 25 years and jobs in rural areas. Indigenous Rights: Human Rights Watch warned revised FPIC guidelines could weaken protections for Indigenous Peoples by shortening timelines and limiting recourse. Solar Permitting Reform: DOE scrapped preapproval barriers for small-scale solar systems, speeding installs for households and medical facilities while requiring anti-islanding safety. Disaster Updates: Tropical Storm Maymay made landfall in Ilocos Sur and kept TCWS No. 2 up across parts of Northern Luzon, prompting class suspensions in several Ilocos Sur LGUs. Education Safety Online: DepEd will coordinate with telcos and social media to tighten safeguards for minors after violence linked to online content and games. Cyber/Scams: MMDA chair Romando Artes asked the NBI to probe a scam using NCAP texts and lookalike links. Agri Innovation: Ormoc launched a ube demonstration farm with tissue-cultured planting materials, while a bill seeks ube as a national priority crop. Markets & Inflation: July inflation eased to 6.2%, and analysts expect BSP to stay cautious as rate decisions hinge on cooling prices.

Tropical Storm Maymay: Pagasa raised TCWS No. 2 over parts of Northern Luzon as Maymay slightly intensified, prompting class suspensions in Ilocos Sur and advisories for heavy rain and possible landslides. AI & jobs: A World Bank report warns generative AI could erode outsourcing advantages in South Asia, with the Philippines’ call-center workforce at risk. Cybersecurity & youth safety: DepEd says it will coordinate with DICT, telcos, and social platforms to better regulate minors’ online activity after violent incidents linked to social media and games; it also pushes for regular active-shooter drills with safeguards. Forestry for livelihoods: DENR will open 1.18M hectares of forest land to climate-smart investments, targeting up to ₱38T in production value while aiming to protect forests. Energy tech partnership: AboitizPower and KHNP sign an MoU to explore nuclear energy cooperation, including feasibility studies and training. Gov’t tech procurement risk: LTO plans to blacklist the contractor behind its Land Transportation Management System over alleged security and completion failures. Business & payments: Apple Pay officially launches in the Philippines, while banks and fintechs expand authentication and remittance options. Tech for agriculture: Mitti Labs raises $9.5M to scale rice GeoAI using satellite data for plot-level digital twins. Local infrastructure scrutiny: Sen. Lacson says his Taguig flood-control probe will include Laguna Lake reclamation, seeking forfeiture of reclaimed lakeshore areas.

Cybersecurity Law: The House approved on second reading the National Cybersecurity and Critical Information Infrastructure Protection Act of 2026, setting up a National Cybersecurity Agency to coordinate policy and incident response and to set minimum standards for critical systems. Digital Payments: Apple Pay officially launched in the Philippines, starting with Chinabank, GoTyme, Metrobank, and UnionBank, with Visa and Mastercard support and more banks expected soon. AI + Jobs: A World Bank report says AI can boost productivity in the Philippines, but warns BPO work is exposed to disruption and calls for faster skills and digital infrastructure upgrades. Pax Silica Scrutiny: Cebu City Mayor Nestor Archival says the city is preparing for AI-driven investment under Pax Silica, while critics flag major power, water, land, and public-trust concerns. Flood Control Accountability: DOJ received fresh criminal complaints tied to Cebu flood control anomalies involving 20 DPWH-linked individuals, while Sen. Ping Lacson expanded his probe to alleged illegal reclamation in Laguna Lake. Weather Watch: Pagasa raised Signal No. 2 over six Luzon areas as Tropical Storm Maymay intensified. Local Tech for Environment: UP MSI’s PlastiZen project signed a MOA with Bohol partners to expand plastic pollution monitoring via a citizen science app.

Cybersecurity Law: The House approved on second reading HB 9605, creating a National Cybersecurity Agency to coordinate national cyber defense and set minimum standards for protecting critical infrastructure. Flood Control Accountability: DOJ opened preliminary investigations into two alleged “ghost” flood control projects in Cebu, filing complaints against 20 DPWH Cebu 3rd District officials, engineers, and contractors for graft, malversation, falsification, and procurement violations. Local Flood Risk: Iligan remains vulnerable as flood control gaps persist, with residents still rebuilding after past disasters and dredging efforts continuing along the Iligan River. Pax Silica Scrutiny: New Clark City’s proposed AI and semiconductor hub faces questions over power and water needs, land use, and potential food security impacts, with officials seeking more details on economic and environmental effects. AI for PH Problems: DOST’s Renato Solidum Jr. urged developers to build AI that solves Filipino issues rather than chasing frontier models. Payments Network Governance: Payments Network of the Philippines elected its 2026–2027 board, with InstaPay and PESOnet operations continuing under the merged entity. Energy Build-Out: DOE said it is on track for 10,000 MW of new capacity, with thousands of MW expected to come online in the next two years, alongside major solar and storage projects. Tech Ecosystem Push: Xsolla, GDAP, and DTI-EMB signed an MoU to mentor and promote Philippine game developers for global market access. Market Watch: PSEi slipped to around 6,297 as investors locked in gains amid US–Iran uncertainty and oil volatility.

Flood-control accountability: The NBI says it will file about 30 more flood-control cases to the DOJ, after already submitting 27 tied to public works anomalies involving figures including Sen. Jinggoy Estrada and former Sen. Bong Revilla. Digital governance push: DICT’s inaugural eGov Hackathon has 46 teams advancing, with 1,500+ registrants building citizen-focused solutions using eGov APIs. Fintech convenience: GCash is rolling out “link-and-pay” for QR purchases funded by linked Visa cards, using Visa Payment Passkey for biometric authentication. Food security under heat: New research warns climate change could cut rice harvests more than previously estimated, with hotter days hitting yields hardest. Rice supply chain ties: PH and South Korea reaffirm cooperation to strengthen the rice supply chain, including seed production and buffer stock management. Maritime lawfare: US and PH defense officials challenge Beijing’s “lawfare” at a regional security conference, urging ASEAN to uphold the 2016 South China Sea arbitral award. Pax Silica controversy: Malacañang says Sen. Imee Marcos can proceed with a Pax Silica inquiry, while officials cite buildable zones and farmer concerns. EV momentum: VinFast begins electric two-wheeler rollout in the Philippines with 21 showrooms and plans for 100+ more locations. ASEAN business diplomacy: The PCCI-NCR hosts MMBC 2026 on energy, trade, and security for resilient ASEAN. Tech policy on piracy: CitizenWatch urges Congress to act on pending site-blocking bills to strengthen IPOPHL powers against digital piracy.

Pax Silica Oversight: The BCDA says it’s ready for a Senate inquiry into the US-led AI-native hub in New Clark City, stressing support for nearby farmers and Ayta communities as the project faces renewed scrutiny over sovereignty, land use, and power needs. Digital Payments: GCash is rolling out “link-and-pay” for QR purchases using linked Visa cards, with biometric Visa Payment Passkey authentication to reduce fraud risk. Connectivity Buildout: PLDT, Globe, and Converge ICT Solutions have proposed a $500M nationwide domestic submarine cable system, aiming for completion within 24 months after approval. Energy Regulation: The ERC approved a feed-in tariff allowance hike to stabilize the FIT-All fund for renewable energy producers, adding P0.1348/kWh to the existing rate. IP for the Next Gen: IPOPHL plans to work with DepEd and CHED to boost student awareness of intellectual property rights as the country pushes an AI-driven economy. Tech & Jobs: A Bloomberg report warns AI is already cutting call center roles, with outsourced work in the Philippines among the most exposed. Weather Disruptions: Classes and work were suspended in parts of Luzon as Tropical Depression Luis and habagat bring heavy rains.

Disaster Response: Tropical Depression “Luis” and the enhanced southwest monsoon prompted class suspensions and work stoppages in multiple Zambales towns, while key personnel stayed on duty for emergency services. Economic Outlook: Economists expect Philippine GDP growth to slow to about 2.7% in Q2, with public infrastructure spending, investment, and consumption weighed down by inflation. Inflation Watch: July inflation is seen holding around 6.4% as cheaper food offsets higher fuel and electricity costs, but forecasts diverge on whether price pressures could re-accelerate. Energy Policy: A House bill would ease rules for “behind-the-meter” rooftop solar and battery storage by treating end-user systems differently from commercial generation, aiming to cut regulatory friction. Connectivity: PLDT, Globe, and Converge are teaming up on a potential $500M archipelagic submarine cable backbone to improve redundancy and resilience, pending government concurrence. AI & Industry Politics: The Pax Silica AI hub faces mounting opposition over water, land, and power strain, while business groups back it—conditional on safeguards and measurable public benefits. Maritime Law: A UNCLOS forum in New York highlighted the 2016 South China Sea arbitral award’s ongoing role in ocean governance. Defense & Tech: The Philippines is exploring Ukraine’s drone know-how for South China Sea operations, as Manila weighs what lessons translate to grey-zone maritime encounters. Food Security: PIDS urges a shift in farm and food security policy, citing malnutrition, weak agricultural productivity, and execution gaps. Agritech: Eastern Samar’s Rice Derby 2026 tests modern rice technologies across 150 hectares to boost yields and cut costs. Regional Tensions: China says it ran drills near Scarborough Shoal, escalating after recent clashes with the Philippines.

Security & Reintegration: In Basilan, three former Abu Sayyaf supporters surrendered to the Philippine Army with 18 high-powered firearms, facilitated by reservist Brig. Gen. Mikee Romero and ARRAPI, marking another step in peace and reintegration efforts. Inflation Watch: July inflation likely held near June’s pace (around 6.4% year-on-year), with cheaper rice and vegetables offsetting higher fuel and electricity costs—keeping pressure on the BSP to maintain elevated rates. Water & Climate Adaptation: Philippine Air Force cloud-seeding helped lift Magat Dam levels in Isabela, easing dry-season stress for farmers and irrigation operations. EV Manufacturing Push: An EO-backed EV incentives program is expected to drive EV prices down by 6–12% and support more local manufacturing and jobs. Power Policy Debate: Senator Bong Go urged EPIRA amendments to deliver real, immediate electricity bill savings, while lawmakers and groups warn that the US-led Pax Silica plan could strain the power grid and raise risks around any push for small nuclear reactors. Local AI for Governance: Metro Cebu rolled out PLDT/Smart AI-in-a-Box to help LGUs use AI tools for more responsive public services. Digital Tax Compliance: The BIR is accelerating e-invoicing requirements by Dec. 31, 2026, with businesses urged to check system readiness ahead of future electronic sales reporting. Health & Harm Reduction: A new medical review says heated tobacco products show lower pulmonary harm and lung cancer risk than cigarettes, supporting tobacco harm reduction for smokers who can’t quit.

Pax Silica Backlash: Lawmakers and church groups are pushing for scrutiny of the US-led Pax Silica AI/semiconductor hub in New Clark City, with critics warning it could consume massive power and water, displace Indigenous communities, and mainly serve foreign interests—while supporters like the Management Association of the Philippines back a “Proceed, but Protected” approach with safeguards. Energy & Grid Concerns: Deputy Minority Leader Antonio Tinio calls the project “voracious,” arguing it could strain the national grid and be used to justify importing modular nuclear tech. Governance & Data Questions: A key sticking point is who will govern the hub’s data and how AI governance and critical digital infrastructure will be handled; a House minority bloc has filed for a congressional inquiry into sovereignty, security, data governance, and environmental impacts. AI Skills for OFWs: A Doha-based Filipino educator is rolling out practical AI training for overseas Filipino workers, positioning AI as a productivity tool for everyday tasks. Education Tech Support: Philippine Coding Camp donated a 3D printer and research-writing resources to the Philippine Military Academy to boost additive manufacturing and technical documentation skills. Fisheries Enforcement Hit: The Supreme Court ruling striking down vessel monitoring for commercial fishing drew alarm from Oceana, which says it weakens efforts against illegal fishing. Science Discovery: Fossil findings from Pilandok Cave in Palawan suggest tigers naturally inhabited the island 20,000–24,000 years ago, with cut marks indicating prehistoric human interaction. 5G Momentum: Ericsson reports global 5G subscriptions topped 3.1 billion in Q1 2026, with the Philippines flagged as a fast-growing market.

Pax Silica Power & Sovereignty Clash: Cardinal David and lawmakers are questioning the US-backed Pax Silica AI/data-center hub in New Clark City, warning it could consume massive power and raise concerns over who benefits, with critics also pushing for safeguards and a House inquiry. Fisheries Enforcement Setback: Oceana says a Supreme Court move striking down vessel monitoring for commercial fishing weakens the fight against illegal fishing, urging BFAR to preserve the monitoring system. Climate & Food Security: New research suggests warming could cut global rice yields nearly twice as much as major crop models estimate, with heat during reproductive stages flagged as a key driver. AI in Logistics Education: Filipino students are taking AI-powered autonomous warehouse drone concepts to the Asia-Pacific finals after proposing drone systems using computer vision and RFID for faster, more accurate inventory. Inflation Watch: BSP expects July inflation to stay above target at 5.6%–6.6%, citing fuel, electricity, fish prices, and peso depreciation. EV Manufacturing Push: Marcos operationalized a ₱60B EV incentive package via EO 121, aiming to attract EV investments and local production. Public Cash Assistance Goes Digital (BARMM): BARMM and GCash launched FAST to speed up online distribution of humanitarian cash aid across the region. Toxic Paint Warning: EcoWaste Coalition warns imported China-made spray paints may contain extreme lead levels, urging consumers to avoid non-compliant products. Archaeology Discovery: Fossils from Pilandok Cave suggest tigers naturally inhabited Palawan over 20,000 years ago, with signs of human interaction.

Pax Silica Power Crunch: A new wave of debate is hitting the US-backed Pax Silica AI hub as analysts warn it could further strain the Philippine power grid, while ACEN says it’s open to energizing the project—if grid connections and massive electricity needs are carefully planned. US-PH Push: US Ambassador Lee Lipton says Washington and Manila are “moving FAST” on Pax Silica and the Luzon Economic Corridor, with Defense Sec. Gilberto Teodoro framing it as resilience. Energy & Inflation Pressure: BSP expects July inflation to stay high at 5.6%–6.6%, citing fuel, electricity, fish prices, and peso depreciation—an economic backdrop that makes big power projects even harder to sell. Fisheries Monitoring Upgrade: DA and BFAR handed Vessel Monitoring System workstations to the Coast Guard to track fishing vessels in real time, aiming to curb illegal fishing and even help spot smuggling routes. EV Industrial Policy: Marcos signed EO 121 operationalizing a ₱60B EV incentive strategy to attract local EV manufacturing investments. Public Sector Accountability: Sandiganbayan granted Bong Revilla bail (P1M) in a DPWH flood-control case, while another Ombudsman probe targets “ghost electricity” solar projects involving Legarda, her son, and former energy chief Cusi. Health Tech & Safety: Heated tobacco users may face lower pulmonary harm than cigarette smokers, while NBI arrested a fake doctor offering penile enlargement procedures in a Parañaque hotel.

Defense & Cyber Talent: The AFP is set to recruit cybersecurity and AI specialists, with a push for Direct Commission/Direct Enlistment to bring in technical professionals as workforce gaps strain counter-intelligence and other missions. Energy & Inflation Watch: BSP forecasts July inflation at 5.6%–6.6%, citing higher fuel, electricity, and fish prices even as food costs ease. Pax Silica Scrutiny: New analysis flags data centers’ massive power needs, while lawmakers and stakeholders keep pressing for safeguards, transparency, and enough local benefits as the US-led AI hub debate heats up. Health Tech & Care Delivery: A UP alumna-backed health tech startup is expanding a clinic operations platform aimed at helping providers spend more time on patient care. Fintech Inclusion: FintechAlliance.Ph backs an Open Finance bill that would let consumers authorize sharing of alternative data (like payments and subscriptions) for credit checks. Public Safety: PNP trained over 50 personnel on handling IEDs, reflecting rising threat complexity. Consumer Tech Policy: Apple hints that heavier use of AI features may require iCloud+ upgrades via “upgrade possibilities.”

EV Manufacturing Push: Marcos signed EO 121 launching a P60B Electric Vehicle Incentive Strategy (Evis) to back up to four EV makers with P15B each, aiming to grow local production, jobs, and the EV supply chain. AI in Healthcare: Ateneo-led researchers built an AI model that predicts cardiac index using noninvasive sensor stickers, reporting 97.78% classification accuracy and a simpler path to heart monitoring. Digital Finance & Identity Tech: WFIS 2026 is set for Aug. 25–26 in Manila, spotlighting AI, data analytics, GRC, and biometric authentication for banks and fintech; meanwhile, identity-industry updates highlight deepfake detection and biometric-ready payment terminals. Pax Silica Debate: The Management Association of the Philippines backs Pax Silica only if governance and implementation protect national interest, shared prosperity, sustainability, and accountability; Malacañang says electricity, water, and local coordination concerns are being addressed and deal provisions may change. Maritime Law: The Philippines presented its extended continental shelf claim for the West Philippine Sea to the UN CLCS, urging use of UNCLOS and the 2016 South China Sea arbitral ruling. Education Infrastructure: Edcom 2 data says 69% of public school sites still aren’t titled under DepEd, potentially slowing classroom expansion efforts. IT-BPM Policy: PEZA said lifting the Metro Manila IT park moratorium won’t drain provincial investment and could help firms scale into other hubs. Transport Services: LTO extended validity of expiring vehicle registrations and licenses nationwide due to Land Transportation Management System portal issues.

EV Manufacturing Push: President Marcos signed EO 121 creating the P60B Electric Vehicle Incentive Strategy (EVIS) to spur local EV and parts production, with incentives for up to four manufacturers over 10 years. AI for Health: Ateneo researchers reported a non-invasive AI model that estimates cardiac index with 97.78% accuracy, aiming to make heart monitoring easier where specialist tools are scarce. Pax Silica Water/Energy Reality Check: DICT says the Pax Silica AI hub could reach 300–400MW of data center capacity (more than double today’s), while separate reporting flags major water and power demands that could stress Central Luzon without strict safeguards. Flood Tech in Manila: Mayor Isko Moreno said Manila is using an AI-powered 3D-mapping drone to predict flooding up to two hours ahead. Disaster Response on the Ground: DPWH ordered dredging of Davao’s Talomo River and dike elevation after last week’s flooding. Education Infrastructure Bottleneck: Edcom 2 data shows nearly 70% of public schools sit on untitled land, threatening classroom buildout despite Marcos’ push for more “production arms” and PPPs. Biodiversity Find: DENR-Davao documented a rare Mindanao bleeding heart pigeon at Mount Hamiguitan Range UNESCO site.

Pax Silica Industrial Hub: Defense Sec. Gibo Teodoro defended the US-linked Pax Silica AI-and-industry hub in Luzon as a long-term “national resilience” move tied to AFP modernization, while critics push for more transparency and warn about environmental and geopolitical risks. Space Policy: PhilSA says it’s pursuing a public-private partnership for a Philippine spaceport, aiming to support sustained commercial rocket launches after the first liquid-fueled sounding rocket test next year. Disaster Readiness: DPWH ordered immediate dredging of Davao City’s Talomo River and dike elevation after last week’s floods, and it plans to fund a long-delayed JICA flood control master plan in 2027. Energy Learning: Marcos opened the DOE’s first interactive energy museum and announced an Energy Center for Excellence to train and build R&D capacity for the sector. Waste & Health Debate: Environmental groups rejected Marcos’ push to amend the solid waste law to allow waste-to-energy, citing toxic emissions risks. AI & Cybersecurity: CICC flagged nine individuals/groups allegedly behind online efforts to disrupt Marcos’ Sona and says it coordinated takedowns with law enforcement. Agritech & Aquaculture: DA launched the country’s first seaweed bioreactor facility in Sorsogon to produce disease-free planting materials year-round. Tax & Compliance: BIR filed criminal tax evasion cases totaling over P416M, including a POGO-linked firm and construction/real estate entities. Education Safety: DepEd started consultations for an executive order updating suspension/resumption guidelines for classes and onsite work during disasters and extreme heat.

Philippines Space Push: PhilSA says a public-private partnership could build a local spaceport, while the first liquid-fueled sounding rocket test is slated for 2027 from Cagayan—aimed at boosting launch capability and homegrown rocket know-how. Energy & Power Reform: The DOE opened the country’s first interactive Energy Museum and plans an Energy Center for Excellence; meanwhile, officials say removing the system loss charge from bills may take about a year, with EPIRA amendments still in motion. Digital Infrastructure & Data Localization: DICT awarded a ₱348.5M cloud hosting contract for government platforms and is pushing data residency rules that could benefit local telcos like Converge. Metro Manila Tech-Driven Disaster Response: Manila’s AI drone and mapping system can flag flood risk up to two hours ahead using 3D and ArcGIS-style analytics. Environment in the West Philippine Sea: DENR is moving to declare more Marine Protected Areas in the KIG/WPS, backed by years of marine research. Public Safety & Materials Quality: NBI and partners shut down a Chinese-owned steel plant in Pampanga over substandard steel and radioactive materials, warning of earthquake risks. Local Tech Economy: Metro Manila’s IT ecozone moratorium for new PEZA IT parks is lifted, and Cebu is considering EV chargers at gas stations to speed EV adoption. Governance & Accountability: Lacson says “evidence” on Taguig infra anomalies is now with the Ombudsman, as DOJ reports ₱841M recovered in flood-control restitution. Agritech & Food Systems: DA launched the first seaweed bioreactor in Sorsogon to produce disease-free planting materials year-round, and sugarcane pest RSSI has reached Sultan Kudarat.