The Philippines had another eventful week as severe weather continued to affect communities, the Senate impeachment trial of Vice President Sara Duterte moved forward, and the government's controversial flood control programme remained under intense scrutiny.
Economic concerns also came to the forefront after the Bangko Sentral ng Pilipinas raised interest rates again, while the peso weakened to a new record level against the US dollar. At the same time, the Marcos administration announced new initiatives involving critical minerals, military modernisation and disaster forecasting.
Here are the seven biggest stories that shaped the Philippines from August 21 through August 27, followed by three other major national developments.
1. Habagat and Typhoon Obet Continue to Disrupt Communities
The Southwest Monsoon continued to bring heavy rainfall across Luzon during the week, with Typhoon Saudel, locally named Obet, briefly entering the Philippine Area of Responsibility and further enhancing the monsoon.
PAGASA warned that the combination of Habagat and tropical weather systems could bring heavy rainfall, flooding and landslides to vulnerable areas. Obet entered the Philippine Area of Responsibility on August 24 but remained over the Philippine Sea before exiting the following day. Although the typhoon did not make direct landfall, its presence intensified the southwest monsoon over parts of the country. (Philippine News Agency)
The continuing rains added to damage already caused by earlier tropical cyclones and flooding. By August 27, the National Disaster Risk Reduction and Management Council reported that combined infrastructure and agricultural damage from Luis, Maymay, Neneng and the enhanced Habagat had exceeded ₱7.8 billion. (Philippine News Agency)
The prolonged weather disruptions also increased pressure on the government to demonstrate that its disaster response and flood control programmes can provide meaningful protection to communities.
2. Senate Impeachment Trial of Vice President Sara Duterte Moves Forward
The Senate impeachment trial of Vice President Sara Duterte remained one of the country's dominant political stories throughout the week.
The House prosecution panel said it was targeting the end of September to complete its presentation of evidence, giving the defence an opportunity to present its case from October through November. Prosecutors expressed support for increasing the number of trial days each week in an effort to complete the proceedings before December. (Congress.gov.ph)
The hearings continued to focus heavily on allegations surrounding confidential funds at the Office of the Vice President. On August 25, the Senate impeachment court declared OVP Assistant Secretary and Assistant Chief of Staff Lemuel Ortonio a hostile witness. (Philippine News Agency)
By August 26, the court had also adopted stricter measures governing public discussion of the case, including a two-strike rule for violations of restrictions on publicity surrounding the proceedings. (Philippine News Agency)
The trial is expected to remain a central political issue as senators work through the prosecution's evidence and prepare for the defence phase.
House of Representatives Philippines
3. Flood Control Investigation Expands to Davao City
The controversy surrounding government flood control projects intensified after Ombudsman Jesus Crispin Remulla described Davao City as an "epicenter" of flood control projects before the Marcos administration.
Remulla made the statement during a House budget hearing as his office discussed its investigation into alleged irregularities in government flood control spending. He said investigators were dealing with what he described as an ecosystem of corruption and acknowledged that the investigation remained difficult. (Philstar.com)
The statement immediately drew a response from Davao City First District Representative Paolo Duterte, who challenged the Ombudsman to produce the records supporting the characterization.
Malacañang separately said the government was reviewing thousands of flood control projects reported as completed during the previous administration. The Palace said President Ferdinand Marcos Jr. had also ordered the Department of Public Works and Highways to address severe flooding in Davao City. (Philippine News Agency)
The controversy has taken on greater significance because flooding continued to affect communities around the country while lawmakers were simultaneously examining the proposed 2027 infrastructure budget.
Philippine News Agency coverage
4. Bangko Sentral Raises Interest Rates as Inflation Risks Persist
The Bangko Sentral ng Pilipinas raised its benchmark interest rate by another 25 basis points on August 27, bringing the target reverse repurchase rate to 5 percent.
The central bank said persistent inflation risks justified another increase even though headline inflation had eased to 6.2 percent in July from 6.4 percent in June. Core inflation remained above the central bank's tolerance range, while volatile oil prices, possible wage increases and the threat of a severe El Niño were identified as additional risks. (Philippine News Agency)
The rate increase came as the Philippine peso weakened further. The currency closed at approximately ₱61.88 against the US dollar on August 27, setting another record low. The Philippine stock market also declined, with the PSEi falling more than 2 percent during the day's trading. (Philippine News Agency)
The developments highlight the difficult position facing policymakers. The economy needs stronger growth and investment, but inflationary pressures and a weaker currency are limiting the room for monetary easing.
5. Philippines Moves to Expand Military Drone Capabilities
The Philippines announced plans to expand its unmanned military capabilities as part of a broader effort to modernise the Armed Forces of the Philippines.
Defence Secretary Gilberto Teodoro said the country plans to develop and acquire additional drone capabilities while also strengthening its wider external defence systems. The proposed 2027 defence budget includes ₱305.5 billion, representing a 6.3 percent increase, with ₱50 billion allocated for military modernisation. (Reuters)
The strategy reflects the Philippines' increasing emphasis on external defence and maritime security. Manila has been strengthening defence relationships with the United States and other partners while facing continued strategic pressure in the South China Sea.
The government is also looking beyond simply purchasing equipment. Teodoro stressed the importance of systems integration, secure communications and operational expertise so that drones can function as part of a broader military network.
Reuters coverage of Philippine defence modernisation
6. Marcos Creates New National Policy for Critical Minerals
President Ferdinand Marcos Jr. signed an executive order establishing a unified national policy framework for developing the Philippines' critical minerals industry.
The policy is intended to strengthen the country's position in global supply chains for minerals such as nickel and copper, which are increasingly important for renewable energy systems, electric vehicles, batteries and advanced technologies.
Executive Order 122, signed on August 21, also reorganises the Mining Industry Coordinating Council to support the strategic development of the sector. Government officials said the policy could help the Philippines capture more value from its mineral resources while strengthening its position in the global green technology supply chain. (BusinessMirror)
The initiative comes as governments around the world compete to secure reliable supplies of critical minerals needed for the energy transition and advanced manufacturing.
For the Philippines, the challenge will be balancing economic opportunities from mineral development with environmental protection, responsible mining and the interests of communities affected by extraction activities.
Department of Finance Philippines
7. Government Invests ₱1 Billion in AI Powered Flood Forecasting
The government announced a major investment in Project NOAH as part of a shift toward more science based disaster prevention.
The Department of Budget and Management released ₱1 billion to the University of the Philippines System to strengthen Project NOAH's flood forecasting, hazard monitoring and disaster prevention capabilities. The funding will support artificial intelligence enhanced modelling, higher resolution maps and improved analysis of flood risks. (Philippine News Agency)
The initiative is particularly significant because it connects the country's flood control controversy with a broader question about how infrastructure projects are designed.
Project NOAH officials said better modelling could allow government agencies to assess whether proposed flood control interventions are actually appropriate before billions of pesos are spent. The system could also help identify undocumented waterways and improve understanding of how floodwaters move through communities. (Philippine News Agency)
The investment represents a potential shift from responding to floods after they occur toward using data, modelling and technology to anticipate risks before disasters strike.
Project NOAH and UP Resilience Institute
Three Other Major National Headlines
Moody's Maintains the Philippines Investment Grade Rating
Moody's Ratings affirmed the Philippines' Baa2 investment grade rating and maintained its stable outlook during the week.
The rating agency cited the country's access to domestic and international funding markets, foreign exchange reserves and expectations that fiscal metrics will stabilise over the next two years.
The affirmation provides some reassurance to investors at a time when the Philippines is experiencing slower economic growth, weaker public investment and heightened global energy and geopolitical risks. (Department of Finance)
Government Pushes PhilHealth No Co Payment Policy
President Marcos urged more hospitals to participate in PhilHealth's No Co Payment Policy as part of efforts to reduce the financial burden on patients.
A memorandum of agreement between PhilHealth and St. Luke's Medical Center Global City was signed during the week, with the government presenting the initiative as a step toward improving access to affordable healthcare. (Philippine News Agency)
The policy is particularly significant for patients who face additional out of pocket expenses even after receiving health insurance coverage.
Government Warns of Online Harms and Considers Stronger Social Media Regulation
The government opened discussions on stronger regulation of social media and online gaming platforms following concerns over misinformation, online violence and the use of digital platforms in connection with recent violent incidents.
Malacañang said it was open to proposals that could restrict or even ban platforms if studies demonstrate that they pose serious risks to public safety or fail to cooperate with government efforts.
The discussion followed the August 18 shooting at Ateneo de Zamboanga University, which was livestreamed on social media. On August 27, police also announced criminal charges against the shooter's father and a school security personnel in connection with the incident. (Philippine News Agency)
The debate is likely to continue as lawmakers and technology companies face growing pressure to balance online safety with freedom of expression and access to digital platforms.
Looking Ahead
The coming week is likely to remain focused on the impeachment trial, flood control investigations and the government's response to continuing weather risks.
Economic concerns will also remain important after the latest BSP rate increase and the peso's record weakness. Higher interest rates could help contain inflation but may also add pressure to borrowing, investment and economic growth.
The flood control controversy will continue to connect several major issues. The government is simultaneously investigating alleged irregularities, proposing billions of pesos in new infrastructure spending and investing in AI based tools intended to make future flood control projects more effective.
Meanwhile, the Philippines is strengthening its defence capabilities and developing its critical minerals sector as it seeks a larger role in the regional economy and a stronger position in global supply chains.
For Filipinos, the week's developments ultimately come down to several questions that will remain relevant in the months ahead. Can the government make infrastructure spending more effective? Can it control inflation without sacrificing economic growth? Can new technology improve disaster preparedness? And can the country turn its natural resources and strategic position into sustainable economic opportunities?
Those questions will continue to shape the national conversation as August comes to a close.
