Good morning. It’s Saturday, August 23.

PesoWeekly readers! weekend’s here, but the headlines didn’t take a break. From flood control scandals drowning DPWH to Australia doubling down on defense ties with Manila, the big stories this week span corruption probes, military partnerships, and global trade headaches. We also zoom out: Japan reels from tariffs, South Korea bets its future on AI, and China pushes its digital yuan to chip away at the dollar. On the side, ants school us on teamwork, doctors test a Trojan horse against cancer, and Microsoft warns of “AI psychosis.” Oh, and yes—scammers are getting smarter, and they’re coming for your wallet.

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The Department of Public Works and Highways (DPWH) is caught in a flood of controversy, and all eyes are on Secretary Manuel Bonoan. Lawmakers are pressing him to resign after revelations of ghost and failed flood control projects, but Bonoan insists President Marcos has asked him to stay and “continue the investigation.”

Sen. Francis Pangilinan has been blunt: with “trillions stolen” through alleged rigged infrastructure projects, why hasn’t the secretary stepped down? Sen. Panfilo Lacson has outlined what he called a modus operandi where DPWH officials, contractors, and even lawmakers split the spoils of padded or non-existent projects. Senate leaders like Jinggoy Estrada stopped short of calling for Bonoan’s resignation, but warned that command responsibility lies with him.

Why it matters: The Marcos administration has poured over ₱545 billion into flood control since 2022, yet Filipino communities still drown with every heavy rain. Whether Bonoan survives the fallout or not, the scandal highlights a deeper rot: public funds meant to protect citizens are vanishing, leaving both taxpayers and flood victims high and dry.

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Shopee is doubling down on Pinoy entrepreneurs with the Tatak Pinoy: Sibol Accelerator Program, a six-month initiative to help local MSMEs scale smarter online. Starting Q4 2025, 20 high-potential sellers will join an intensive bootcamp, receive tailored mentorship from Shopee experts, and get milestone-based incentives as they grow. Training covers shop optimization, marketing strategies, fulfillment, and data-driven business planning. The program builds on Shopee’s Tatak Pinoy push, which champions local products and sellers. As Shopee marks 10 years in the Philippines, it says Sibol Accelerator is its next step toward inclusive growth and long-term support for Filipino MSMEs.

The Philippine Stock Exchange (PSE) has issued new guidelines that automatically cancel stock trading if Metro Manila is placed under Tropical Cyclone Wind Signal No. 3 or higher. Trading will only proceed if PAGASA lowers the signal to No. 1 or 2 by 6 a.m. of the next trading day. The PSE also gained wider authority to suspend trading in cases of emergencies like earthquakes, floods, or terrorist threats. In addition, brokers must now designate backup trading partners as part of continuity plans. Economists say the rules add predictability and align the PSE with global best practices.

Japanese credit rating agency R&I has affirmed the Philippines’ A- investment grade rating with a stable outlook, citing strong growth, low inflation, and a solid external position. The economy grew 5.7% in 2024—one of the fastest in Southeast Asia—while inflation dropped to a six-year low of 0.9% in July 2025. R&I also noted healthy reserves, manageable debt, and steady OFW remittances. Finance Secretary Ralph Recto said the rating signals investor confidence and means cheaper borrowing costs, more jobs, and higher incomes. The BSP added that an investment-grade rating frees up funds for infrastructure, health, and education.

Coconut oil, once a household staple, is fast becoming a luxury as prices hit record highs. In India, the top consumer, prices nearly tripled in under two years to ₹423,000 ($4,840 or about ₱270,000) per ton, while global prices jumped to almost $3,000 per ton. The surge comes from weaker harvests caused by aging trees, extreme weather, and pests, just as demand for coconut water and health products boomed. Experts warn prices are unlikely to fall below $2,000 soon, keeping coconut oil—and products like milk, powder, and shampoo—costly while also driving up prices of rival oils.

South Korea is making artificial intelligence its top policy priority after slashing its 2025 growth forecast to just 0.9% amid US tariff pressures. Under President Lee Jae Myung’s first economic plan, the government will roll out policy packages for 30 AI and innovation projects—from chips, robots, and drones to K-beauty and K-food. Seoul also pledged a 100 trillion won ($71.5B) AI fund, co-financed with the private sector, to push the country into the world’s top three AI powers. With birthrates at record lows and long-term growth set to fall below 1%, officials say AI is the only way to keep momentum alive.

Struggling chip giant Intel just secured a $2 billion equity injection from SoftBank, giving the Japanese group a top-10 stake and fresh confidence in Intel’s turnaround. The deal comes as Intel battles heavy losses, falling behind rivals like AMD and TSMC, and a foundry business that has failed to gain traction. SoftBank CEO Masayoshi Son called the move a strategic bet on US chipmaking, though analysts say it won’t solve Intel’s deeper problems. The investment follows reports the US government may also take a stake to stabilize production. Intel shares jumped 7% on the news, while SoftBank’s stock dipped 4%.

Scams are everywhere
In the Philippines, scams don’t knock—they slide into your inbox, your newsfeed, even your LinkedIn messages. What used to be clumsy emails with bad grammar are now polished traps: fake UAAP tickets on Facebook, “executive job offers” laced with malware, or entire corporate databases dumped onto the dark web.

How they get you
PesoWeekly found three common entry points:

Why scams thrive
Weak cybercrime enforcement, oversharing online, and blind trust in large communities create a scammer’s paradise. Add public Wi-Fi risks and low data privacy awareness, and Filipinos are easy prey.

Why it matters
From ₱8,000 lost in a ticket scam to millions exposed in corporate leaks, the common thread is misplaced trust. Online, your personal data is currency—guard it as tightly as cash in your wallet.

Thailand’s suspended Prime Minister Paetongtarn Shinawatra—daughter of ex-PM Thaksin—testified in court Thursday on her 39th birthday in a case that could remove her from office. She is accused of undermining Thailand in a leaked call with former Cambodian leader Hun Sen, where she addressed him as “uncle” and described a Thai general as her “opponent.” The uproar nearly collapsed her coalition and triggered a petition for her ouster over “ethical standards.” The court, which ousted her predecessor last year, will rule next Friday. If she loses, Paetongtarn would become the third Shinawatra forced out early, continuing her family’s stormy political saga.

Japan’s exports fell 2.6% in July, the sharpest decline since 2021, as US tariffs hammered shipments of cars, auto parts, and steel. Exports to the US alone plunged 10.1%, with vehicle sales down nearly 30% in value. To hold on to market share, Japanese firms have been slashing prices, which has squeezed profits. Imports also dropped 7.5%, but Japan still posted a ¥117.5 billion trade deficit. Economists warn the tariff hit could drag Japan’s economy into contraction by Q3, raising pressure on the Bank of Japan to tread carefully on rate hikes while businesses brace for prolonged uncertainty.

China is ramping up efforts to expand use of its digital yuan (e-CNY) and explore a potential yuan-backed stablecoin, aiming to reduce reliance on the US dollar in global trade. Since its 2019 launch, e-CNY has logged 7.3 trillion yuan ($1 trillion) in transactions, with some cities even paying civil servants in it. Beijing has also promoted e-CNY use in Africa. Still, limits on yuan convertibility and strict capital controls remain major hurdles. While the dollar still dominates global payments at 47%, the yuan trails at just 2.9%. Hong Kong’s new stablecoin law may serve as China’s testbed for pushing the yuan further into global finance.

Manila has slid further down the Smart City Index, placing 63rd out of 73 cities in the 2025 list by the International Society for Urban Informatics. The capital fell 19 spots from its previous rank of 44th, making it the lowest-ranked among Asia-Pacific peers. Tokyo led the region at fifth place, with Singapore at 21st and Jakarta at 60th. Experts said Manila’s low ranking reflects poor digital infrastructure, weak transport systems, and lack of inclusive urban services. Analysts urged stronger investment in smart mobility, affordable connectivity, and citizen-centered policies to close the growing urban digital divide.

The Philippines has been removed from the European Union’s list of high-risk countries as of June 10, 2025—its third exit from dirty-money watchlists this year. The EU cited stronger anti-money laundering and counter-terrorism financing measures, echoing the Financial Action Task Force’s (FATF) earlier decision to delist the country in February. BSP Governor Eli Remolona said reforms will continue to keep pace with global standards. The BSP noted the exits from the FATF, UK, and EU lists boost international confidence, which could mean lower remittance fees, smoother banking ties abroad, and more trust in the Philippine financial system.

Government spending on infrastructure bounced back in June after the election ban was lifted, with disbursements rising 6.5% year on year to ₱148.8 billion and 20.2% higher than May, the Department of Budget and Management reported. The rebound came as the DPWH resumed payments for new and ongoing projects, although growth was tempered by last year’s big-ticket defense spending. For the first half of 2025, infrastructure outlays hit ₱620.2 billion, slightly below target but still equivalent to 5.3% of GDP. Economists said steady infrastructure spending is vital to boost productivity, attract foreign investment, and support inclusive economic growth.

Australian Deputy PM and Defense Minister Richard Marles met Philippine officials in Manila this week as both nations move to deepen military cooperation. His visit coincided with the second PH-Australia Defense Ministers’ Meeting, where the two sides signed a statement of intent to pursue a full Defense Cooperation Agreement by 2026. The deal will expand on a 1995 pact, covering joint exercises, annual ministerial meetings, and even defense infrastructure projects across the Philippines. Marles is also in town to observe Exercise Alon 2025, Australia’s largest overseas training drill, which includes the US and Canada. Both sides say the stronger partnership is key to upholding regional security and international law in the Indo-Pacific.

The Philippines is set to play a bigger role in global sports manufacturing, with Head Sport Philippines expected to produce up to 60% of the world’s tennis balls from its new facility in Panabo City, Davao del Norte. The five-hectare plant, which began operations in January, will eventually churn out 14 million dozen tennis balls annually—all for export—and employ over 700 workers. PEZA said the factory already sets the global quality standard, thanks in part to locally sourced Mindanao rubber. The move cements the country as a critical hub in Head’s worldwide network and boosts opportunities for MSMEs.

The Department of Information and Communications Technology is studying whether the mothballed Bataan Nuclear Power Plant (BNPP) can be repurposed into a hyperscale data center, a move aimed at attracting global tech giants. ICT Secretary Henry Aguda said the site has key advantages: solid infrastructure, location inside a freeport zone, access to fiber, and proximity to cable landing stations. The DICT will launch its own assessment after the Korea International Cooperation Agency completes a separate nuclear revival study in November. The plan comes as the Philippines pushes to become a hyperscale hub in Asia amid growing cloud demand.

Microsoft’s AI chief Mustafa Suleyman says he’s troubled by a growing number of people experiencing “AI psychosis”—when heavy reliance on chatbots like ChatGPT or Grok blurs the line between reality and imagination. Some users have convinced themselves they’ve unlocked hidden features, entered relationships with AI, or even gained superpowers. Experts stress that while AI may sound human, it isn’t conscious and shouldn’t be treated as such. Doctors warn this could become a mental health risk, much like social media overuse. Suleyman urged stricter guardrails, adding: “Companies shouldn’t promote the idea their AIs are conscious. They’re not.”

Scientists at the University of Sheffield are developing a Trojan horse method to fight cancer, coating cancer-killing viruses with magnetic nanoparticles so they can slip past the immune system undetected. Once inside the body, doctors can use magnets to guide the cloaked viruses directly to tumors, where they break free and destroy cancer cells. The approach could drastically cut side effects, since patients would need far lower doses compared to current treatments. Early trials on prostate, brain, and breast cancer models show reduced tumor size. The team is now preparing to spin out a company to bring this breakthrough closer to patients.

Weaver ants may have just outsmarted humans at teamwork. A new study shows that instead of slacking off when groups get bigger, these ants actually pull harder as their team grows—nearly doubling their individual strength. By forming living chains to tug leaves into nests, some ants anchor while others pull, creating a “force ratchet” that stores and multiplies effort. This defies the well-known Ringelmann effect, where humans contribute less in larger groups. Scientists say the discovery could inspire swarm robotics, letting teams of small robots cooperate more efficiently, just like ants building aerial homes in the forest canopy.

PhilJobNet – A government-run job portal under DOLE that connects job seekers with employers locally and abroad. It also offers career guides and reliable listings.

WorkAbroad.ph – The go-to site for Filipinos looking for overseas jobs. It partners with POEA-accredited agencies to ensure legitimate postings and protect workers from scams.

OnlineJobs.ph – The largest online board for Filipino remote workers. Popular for freelance roles with international clients like virtual assistants, writers, and developers.

Bossjob – A mobile-first app that lets job seekers chat directly with recruiters and hiring managers, streamlining the application process.

Glassdoor – Known for reviews and salary insights, but also useful for job searches. Helps applicants research company culture, benefits, and employee experiences before applying.