MCT DAILY BRIEF | AUGUST 8, 2026

THE ECONOMY GREW ONLY 2.3 PERCENT IN THE SECOND QUARTER

The Philippine economy grew by 2.3 percent from April to June compared with the same three months last year.

That was slower than the 2.8-percent growth recorded in the first quarter. It was also the weakest quarterly growth since 2021.

For the first six months of 2026, the economy grew by 2.6 percent.

The government is aiming for full-year growth of 3.5 to 4.5 percent. That means the economy has a lot of catching up to do in the second half of the year if it wants to reach even the bottom of that target.

One of the biggest problems was investment.

Investment fell by 9.2 percent compared with a year earlier. Construction dropped by 14.8 percent.

Economic Planning Secretary Arsenio Balisacan said the fall in government construction was one reason for the slowdown. He linked part of that drop to delays and tighter checks following the flood-control corruption scandal.

The GDP report itself does not tell us exactly how much of the slowdown came from that problem. What it does show is that construction and investment were weak during the quarter.

Household spending still grew, but only by 2.8 percent.

That is important because spending by ordinary families makes up a large part of the economy. When people are dealing with higher food, fuel, electricity and transport costs, there is less money left for other purchases.

AUSTRALIA AGAIN BACKED THE PHILIPPINES ON THE WEST PHILIPPINE SEA

Defense Secretary Gilberto Teodoro met Australian Deputy Prime Minister and Defense Minister Richard Marles in Darwin on August 7 as the Philippines and Australia continued talks on closer military cooperation.

Marles again backed the Philippine position that disputes in the West Philippine Sea should be settled peacefully and according to international law, including the United Nations Convention on the Law of the Sea.

The meeting came as Exercise Pitch Black 2026 ended in Australia.

Four Philippine Air Force FA-50PH fighter jets joined the exercise, which brought together aircraft and personnel from 20 countries.

The Philippines and Australia are also working on a wider defense agreement. The two governments signed a statement of intent in 2025 and said they hoped to finish the agreement this year.

The talks in Darwin covered future military exercises, information sharing and cybersecurity.

This does not mean Australia has suddenly promised to go to war for the Philippines.

The two countries already have an agreement covering visiting military forces. The new deal being discussed is meant to make defense cooperation easier and broader.

It is not the same as the Philippines’ Mutual Defense Treaty with the United States.

For ordinary Filipinos, the bigger picture is that the Philippines is trying to work with more countries as pressure from China continues in the West Philippine Sea.

A ₱10-A-LITER FUEL DISCOUNT FOR SOME FOOD TRUCKS NOW HAS OFFICIAL RULES

New Department of Agriculture rules for a fuel-subsidy program took effect on August 7.

The program can give a ₱10-per-liter fuel discount to qualified trucks that carry agricultural and fishery products.

That can include trucks moving rice, corn, vegetables, fish, livestock and poultry.

The idea is simple.

When diesel prices rise sharply, the cost of bringing food from farms, fishing areas and production centers to markets also rises. Those higher transport costs can eventually become part of the price paid by consumers.

The program is meant to help reduce that pressure.

But the discount is not for every truck carrying food.

Operators must be approved or listed under government programs such as the Agriculture Department’s Food Lane Program or a recognized fisheries logistics list.

There is another important detail.

The rules taking effect does not mean qualified truckers can immediately drive to a gas station and get ₱10 off every liter.

The government still has to activate the program.

That can happen during an energy emergency, a state of calamity, another serious fuel problem or a similar situation recognized by the government. Money must also be available, and the agencies and financial institutions involved still have to put the system in place.

So for now, the rules are ready. The actual discount still needs to be switched on.

THE GOVERNMENT HAS STARTED BIDDING FOR WASTE-TO-ENERGY PROJECTS

August 7 was the scheduled auction date for the Department of Energy’s special Green Energy Auction for waste-to-energy projects.

The government is looking for projects that can produce up to 400 megawatts of electricity using municipal solid waste.

The basic idea is to take part of the garbage normally sent to landfills and use it to produce power.

The government says this could help with two problems at the same time: the shortage of landfill space in some areas and the need for more electricity.

The Energy Regulatory Commission set a maximum bid price of ₱9.2959 per kilowatt-hour for qualified projects.

That does not mean every winning project will automatically be paid that amount. It is the highest price allowed under the auction.

Waste-to-energy projects also come with difficult questions.

A company still needs enough usable waste to keep the plant running. It needs permits, financing, agreements with local governments and equipment that can meet pollution and environmental rules.

Winning a bid is only the beginning.

As of this morning, the Department of Energy had not yet released an official final list showing which projects won or how much of the 400-megawatt target was filled.

We should not say 400 megawatts were awarded until the government releases those results.

THE FLOOD-CONTROL HEARINGS ARE SLOWLY TURNING INTO ACTUAL CASE-BUILDING

The Senate’s flood-control investigation has already produced months of hearings, accusations, testimony and political fights.

The next part may be less dramatic to watch, but it is more important.

Records gathered by senators are now being used by the Office of the Ombudsman and other investigators as they decide whether actual cases can be filed.

The Ombudsman has already received the Blue Ribbon Committee’s partial report and supporting records.

Senators have also said documents and testimony gathered during the hearings can be sent to the Ombudsman and the Department of Justice.

A Senate hearing can expose problems and put witnesses under public questioning.

It cannot convict anyone.

That job belongs to prosecutors and the courts.

The Ombudsman now has to check whether the testimony heard in the Senate is supported by contracts, payment records, project documents, financial records and other proof strong enough to support a criminal case.

Some accusations may become cases.

Others may be dropped if the evidence is weak.

That is why the next stage deserves attention even if it gets fewer television clips.

For months, Filipinos have heard names, amounts and accusations connected to questionable flood-control projects.

The harder test begins when investigators have to prove those claims outside a Senate hearing.