AGP Executive Report

Aviation & Trade Tech: Malaysia is hosting the 61st Asia-Pacific civil aviation directors’ conference (Sept 7-11) with “Smart Skies” as the theme, focusing on safe, secure, sustainable growth and how emerging tech and digitalisation can strengthen regulation and resilience. Media & APEC Prep: China’s Shenzhen hosted the Asia-Pacific Media Forum ahead of APEC, drawing 400+ reps from 42 countries; it launched a media partnership committee, a digital-smart media intelligence center, and the “Shenzhen Consensus” push for shared prosperity. Cross-border Logistics: FedEx says AI and remote monitoring are being rolled into ground networks to improve 24/7 cross-border freight efficiency as the Johor-Singapore SEZ integration ramps up. Markets & Rates: Asian stocks tracked a cautious mood as oil rose on West Asia tensions and investors weighed the Fed path after strong US jobs data; India’s oil-and-gas outlook stays pressured by crude, costly LNG and weak marketing margins. Energy & Climate Risk: Nepal’s floods could drive major commercial insurance losses, with hydropower projects among the biggest claim areas. Regional Connectivity: A new report says air connectivity across Asia-Pacific and the Middle East rose 11% in 2025, led by Middle East growth. Central Asia Finance: Hong Kong’s leader touts the city as a “trusted partner” for Central Asia, citing new financing and deal activity.

Infrastructure & Land Acquisition: Kenya’s Mau Summit toll road design changes have triggered emergency land purchases via “early entry,” with new interchanges and bridges/underpasses driving extra compulsory acquisitions across Kiambu, Nakuru and Nyandarua. Regional Finance: Qatar will host the AIIB’s 111th Annual Meeting (Sep 28-29) as the bank pushes sustainable infrastructure and private-sector financing. Macro & Energy: The global economy is caught between an oil shock that threatens inflation and growth, and an AI investment boom that could lift productivity—an IMF “tug-of-war” framing with Asia facing a particularly mixed outlook. AI & Data Infrastructure: MongoDB appoints Richard Scott as SVP for Asia Pacific and Japan, betting that the “data layer” is the key to moving AI from experiments to production. Middle East Trade/Finance: The US OFAC blacklisted Turkey’s Golden Global Yatirim Bankasi and two subsidiaries over alleged Iran-linked shadow banking, escalating sanctions pressure. Construction Materials (India): Saint-Gobain targets at least 100 plants in India over five years, aiming to scale sustainable building materials. Tourism Cooperation: East Asia destinations are urged to grow the regional tourism market together via “coopetition,” not just compete for the same visitors. Airline Costs (Taiwan): EVA Air will raise excess baggage and other international baggage fees from Sep 29, citing higher fuel and operating costs.

Central Banking & Energy Risk: Malaysia kept its OPR at 2.75% as inflation stays contained, but warned fuel and price risks remain elevated amid the West Asia conflict and shipping-route disruptions. Nuclear Ambitions: Malaysia is laying groundwork for possible civil nuclear use, weighing who would drive the project—private firms or state energy giants—while building human-capacity plans with the IAEA. Oil Prices & Geopolitics: Crude rallied toward $100 as US-Iran tensions raised fears of Strait of Hormuz disruptions, pushing a geopolitical risk premium even without major supply losses. APAC Insurance: Fitch said competition and abundant reinsurance capacity are squeezing Asia-Pacific reinsurance margins in 2026, with pricing pressure likely to persist. AI & Data Centres: Google and TCS are moving ahead with large data-centre plans in India, including air-cooling approaches, as AI demand reshapes power and cooling needs. Regional Media Cooperation: Asia-Pacific media leaders in Shenzhen adopted the “Shenzhen Consensus,” pledging openness and digital transformation ahead of APEC. Tourism & Business Travel: PATA says Eatof could build a 10-stop East Asia journey to grow multi-destination travel and reduce single-destination competition. Trade & Investment: Turkey’s business council plans a Hong Kong delegation visit to deepen Belt and Road-linked trade and investment ties. Aviation Costs: EVA Air will raise excess baggage fees from Sept. 29, citing higher fuel and operating costs. South Asia Health: Colombo hosts the SAARC ENT Congress focused on more equitable access to ear, nose and throat care across the region.

APEC/Media Diplomacy: Xinhua released an Asia-Pacific communication report from the Shenzhen Asia-Pacific Media Forum, mapping how APEC narratives are evolving across 200,000+ items from 200+ outlets. EV Expansion: BYD says it will announce within a week its next Malaysia move, weighing local partnerships versus manufacturing. India Growth Politics: PM Modi defended India’s 7.8% GDP growth at SRCC, blaming “Fragile Five” critics for “not digesting the numbers,” amid West Asia and trade headwinds. India–China Security: Former CDS Anil Chauhan argued ties with Beijing can’t be “held hostage” to boundary issues, while calling for vigilance and clear agreements. Philippines Growth Outlook: UA&P expects the economy to rebound to above 4% growth in Q4 on infrastructure spending and demand. Regional Trade Push: Nigeria’s FG urged manufacturers to use the ECOWAS Trade Liberalisation Scheme to expand exports across 15 member states. SME/AI Use Case: A Guangdong-developed AI robotics system helped a Malaysian rubber processor cut labor costs 20–30% and boost efficiency. Cyber Risk (PH): A report highlights breach-disclosure strain in the Philippines, citing massive credential and records exposure in 2026. Cricket Economy Angle: India routed Pakistan for 55 in the Women’s Asia Cup, cruising to the target in 8.4 overs.

APAC Media Cooperation: The Asia-Pacific Media Forum opened in Shenzhen with Xinhua urging news groups to deepen cooperation and amplify the region’s voice ahead of APEC leaders’ talks in November, while a new Asia-Pacific Media Partnership organising committee was launched with Bernama as a founding member. Digital Trade Push: Vietnam rolled out “Beyond Vietnam – Vietnamese Goods Take Flight” to help firms build digital export and cross-border e-commerce capabilities. Cambodia-France Business Ties: Cambodia and France signed an MoU for a Cambodia-France Business Forum in Phnom Penh on Nov. 16-17 to connect investors and companies. Southeast Asia Crypto Funding: Blockchain funding in Southeast Asia hit $680m in 2026—more than double 2025—despite fewer rounds, led by a large Crypto.com raise. Regional Finance & Infrastructure: South Korea asked the US to cut tariffs on components for a Hyundai-POSCO electric arc steel plant in Louisiana, while Indonesia invited Russian investors to bid on 138 energy blocks. Energy/Geopolitics Watch: Russia said Putin ordered renaming the Sila Sibiri 2 pipeline to Sila Baikala as talks with China continue.

Luxury Travel & Aviation: Airtripmaker expands its premium business and first-class airline network for US travelers, promising more seamless cabin booking and itinerary coverage. Agribusiness & Education: Bangladesh Agricultural University plans a $180m ADB-backed upgrade to become a South Asia agricultural research and knowledge hub. Sri Lanka Economy & Investment Climate: A Sri Lanka opinion piece argues the country’s $200bn ambition is undermined by governance and banking scandals that hurt investor trust. Circular Economy in Asia: Yokohama and ICLEI Japan launch the Asia-Pacific Circular Cities Forum, growing the Asian Circular Cities Declaration to 43 cities and unveiling an action plan. SME Digital Boost: China backs APEC SME cooperation with new AI empowerment platforms in Guangzhou and Shenzhen. Crypto Compliance Crackdown: US FinCEN links $12.7bn in suspicious activity to crypto investment scams run from Southeast Asian compounds. Energy & Food Prices: US diesel hits an all-time high, warning of knock-on effects for freight and grocery costs. Trade Connectivity Talks: Pakistan-Afghanistan experts call for reopening crossings and separating trade from security tensions. EV Manufacturing Push: Asean faces a “fragmentation problem” unless it harmonizes EV standards and battery-swapping interfaces.

Trade & Logistics: FedEx Malaysia says the Johor-Singapore Special Economic Zone can’t fully deliver without a single-window approach and harmonised rules to cut “double” permits and other non-tariff friction. Energy Transition: China’s Mingyang Smart Energy plans to deepen Malaysia work across offshore wind, solar, battery storage and hydrogen, citing NETR policy clarity as a green-investment tailwind. ASEAN Digital Safety: The Philippines wants big-tech accountability moved from bilateral talks to an ASEAN-wide agenda, targeting scams, harmful content and deepfakes. Capital Markets: Reuters reports Citi expects China approval for its wholly-owned brokerage unit “as soon as this month,” with hiring planned as it competes for onshore securities deals. Cross-border Diplomacy: Myanmar’s Min Aung Hlaing visits Vietnam to normalise ties and court investment as trade has weakened. Business & Markets: Asian shares track a tech-led Wall Street bounce; India’s Sensex and Nifty open higher amid improving private capex signals. Construction & Industry: China’s CIFTIS opens Sept 9 in Beijing with a dedicated “China Services” zone and hundreds of exhibitors.

Banking & Capital Markets: Bank Negara Malaysia kept the Overnight Policy Rate at 2.75%, citing resilient growth and easing inflation, while warning West Asia risks could still weigh on global activity. Regulation: India’s SEBI will review derivative settlement price methodology after rolling out the Closing Auction Session, following trader concerns about expiry volatility. Energy Transition: Malaysia’s economy minister said the managed energy transition must balance reliability and affordability, with oil and gas still central while policy diversifies into nuclear, renewables, storage, hydrogen and bioenergy. Corporate & Dealmaking: Zurich Insurance named Patrick Fyson head of property for Asia and created Dylan Bryant’s role for multinational & captives across Asia-Pacific, both based in Singapore. Trade & Industry: India’s auto push for exports gained momentum as GST 2.0 and lower rates lift demand, but experts warn EV growth needs a domestic battery ecosystem and charging build-out. Geopolitics & Risk: Iran-US tensions escalated after a reported U.S. strike on a wedding party, with sanctions pressure on Iran-related business also expanding. Regional Business: Vietnam urged export strategy shifts toward higher-value, diversified markets as it looks to strengthen competitiveness beyond volume growth.

Indonesia Wildfires & El Niño Risk: Hazardous haze from Indonesia’s fires is spreading across Southeast Asia as officials warn September is the peak of “super El Nino,” with hundreds of thousands of hectares burned and drought blamed on both weather and deliberate land clearing. China Trade Strategy: Xi Jinping’s Egypt-to-Central Asia push spotlights Beijing’s push for alternative trade, energy and manufacturing routes across Eurasia and Africa, including currency-swap use and deals in renewables, data centres and semiconductors. Asia Markets & Rates Mood: Asian equities and bonds edged up as oil eased and US bond yields fell, while investors tracked Fed rate-hike odds ahead of key US data; India’s rupee also strengthened on large FCNR inflows. Philippines AI Data Bottleneck: The World Bank warns the Philippines’ fragmented, disconnected data systems could slow the country’s AI ambitions unless data infrastructure and governance are upgraded. Semiconductor Supply Chain: Solvay plans to more than double Taiwan’s ultra-pure hydrogen peroxide capacity to support advanced chip production. Business & Travel Deals: Cebu is using EATOF to turn tourism talks into partnerships and investment, while AirAsia expands connectivity via a Turkey codeshare. Corporate Moves: CVC Capital Partners is set to buy a controlling stake in Ambrose Construct Group in a $700m deal.

West Asia Security & Shipping: China’s Xi backed a new West Asia security architecture in talks with Egypt’s Sisi, stressing the Palestinian issue must stay central and urging protection of international shipping lanes amid Hormuz tensions. Energy Trade & Industry: Egypt and China agreed to launch the third phase of the Egyptian-Chinese industrial zone in the Suez Canal Economic Zone and expand local-currency swaps, targeting sectors from EVs and renewables to textiles and chemicals. ASEAN Digital Push: ASEAN is set to sign the Digital Economy Framework Agreement at a Philippines summit, aiming to standardise data governance, AI cooperation, digital identity, cybersecurity and digital trade. China-ASEAN Logistics Boost: China’s Pinglu Canal (US$10.8bn) is nearing opening, with a command vessel delivered, designed to cut shipping distance and lower costs for ASEAN-bound manufacturing. Aviation Connectivity: AirAsia launched a codeshare with Turkey’s Pegasus, starting with five European destinations and expanding access to 160 destinations via Istanbul. Food & Health Policy: India’s proposed red warning labels for foods high in key nutrients face pushback from health experts and industry over loopholes and potential overreach. Retail Expansion: Chipotle opened its first Asian restaurant in Seoul, with more South Korea sites planned and a first Singapore outlet targeted for 2027.

Markets & Energy Shock: Renewed US-Iran strikes are pushing oil higher and deepening a global bond sell-off, dragging Asian equities and lifting yields; South Korea’s KOSPI slid nearly 4% as chip stocks fell. Philippines Growth Watch: Economists at the University of Asia and the Pacific see PH growth cooling to ~2.3% in Q3, but rebounding to above 4% in Q4 on a catch-up from infrastructure spending, with oil volatility and trade deficits still a risk. India FX Discipline Debate: Zoho founder Sridhar Vembu says India’s 7.8% growth doesn’t remove the need to conserve foreign exchange as the country still relies on imported energy and technology. ASEAN Sustainability Rules: ACCA says major ASEAN economies are moving toward ISSB-style sustainability reporting, aiming for a single global standard rather than a fragmented patchwork. Regional Connectivity & Trade: Pakistan and Uzbekistan target $2bn bilateral trade and expect more air links; Singapore’s FM floated a Pacific power grid idea linked to Australia to boost energy security. Bangladesh Power Fix: Rooftop solar with battery incentives are being rolled out to ease shortages and cut fuel import dependence. Aviation & Tourism: Sun PhuQuoc Airways launched a daily KL–Phu Quoc route, adding new ASEAN leisure connectivity.

Asia-Pacific Business & Economy: India’s Q1 GDP growth came in at 7.8% year-on-year, beating expectations and easing fears that the West Asia conflict would derail Asia’s fastest-growing major economy, with services leading and manufacturing adding an upside surprise. Monetary Policy Watch: The Philippines’ central bank is likely to hold off on further tightening as inflation is expected to undershoot forecasts, according to Pantheon Macroeconomics. Trade & Regional Links: China-ASEAN trade continues to expand, with figures pointing to strong first-half momentum ahead of major regional trade events. Tourism Policy: Thailand will cut visa-free stays for visitors from over 60 countries to 30 days from Sept. 15, citing crime concerns. Deal & Corporate Moves: Baker McKenzie strengthens its Hong Kong disputes practice by hiring Justin Tang from Linklaters; Bonchon is acquired by Minor Food and Serruya Private Equity, setting up expansion plans across the Americas. Energy & Geopolitics: India and Japan are pushing a “Joint Statement on Energy Resilience” as West Asia tensions reshape energy security thinking. Sports & Economy Angle: The Philippines sepak takraw team faces a “medal or make way” ultimatum ahead of the Asian Games, reflecting how public funding and performance pressures are tied together.

Corporate Restructuring: Jollibee is considering a separate HKEX listing for its international unit, Jollibee Foods Corporation International, to unlock investor access and support North America expansion. Regional Trade & Investment: China-ASEAN ties keep accelerating ahead of CAEXPO, with bilateral trade up 24.7% in the first seven months to $744.4bn and China-ASEAN trade topping $1tn in 2025. Finance & Markets: Bursa Malaysia saw five straight weeks of local net buying (+RM200.5m), while foreign institutions kept net selling; in the Philippines, MUFG flags the peso as Asia’s weakest link as US yields stay high. Development Finance: ADB President Masato Kanda wins a full five-year term, pledging faster, larger support amid overlapping shocks. Energy & Climate Tech: Sigenergy launches an AI-enabled smart home storage system in Thailand; Indonesia eyes China-built solar capacity for 100 cities by 2029. AI & Business Services: Darwinbox appoints Pannie Sia to scale enterprise growth across Singapore, Malaysia and Indonesia. Disaster Watch: Nepal and China report rising flood deaths and missing after a glacial collapse, with hydropower projects hit. Logistics & Trade Fairs: Messe Muenchen India buys IICS to broaden India’s air/sea cargo trade-fair ecosystem.

India Growth Beat: India’s April-June GDP rose 7.8% y/y, led by services and a manufacturing upside, easing fears that the West Asia shock would derail momentum. Markets & Energy: Asia trade stayed choppy as oil jumped after US strikes near the Strait of Hormuz and Fed rate-hike expectations kept yields elevated. SCO Diplomacy: Modi met Putin and Pezeshkian in Bishkek, pushing dialogue on West Asia and Ukraine while India and Russia also discussed maritime safety for Indian seafarers. China-Russia Close Ties: Xi and Putin used the SCO setting to deepen cooperation across energy, industry and logistics. ASEAN-Plus Security: Indonesia kicked off “Super Garuda Shield” drills with the US and allies, while keeping its “free and active” balancing act between Washington and Beijing. Stablecoin Push: OSL reported a surge in B2B stablecoin payment volumes, signaling faster cross-border settlement as regulation firms up. Tech & Industry: Airbus awarded Mahindra Aerostructures an A320 fuselage skin contract; NVIDIA and MediaTek expanded AI chip partnership. Currency Watch: The Philippine peso stayed Asia’s weakest link despite BSP tightening, with analysts citing external pressures. Policy & Trade: UAE-India ties deepen under CEPA, with both aiming to double trade by 2032.

Markets & Energy Shock: Asian shares slipped and oil jumped after the US struck Iranian rocket launchers near the Strait of Hormuz, reviving supply-risk fears and rate-hike expectations after Fed Chair Kevin Warsh’s hawkish tone. Central Asia Connectivity & SCO: Xi Jinping’s Kyrgyzstan visit and the Sept 1 SCO summit in Bishkek put economic cooperation, connectivity, energy and digital development front and center as leaders seek to counter US influence. India–Central Asia Trade Push: PM Modi’s Uzbekistan and SCO diplomacy targets deeper ties, including a $5bn trade goal by 2030 and connectivity and payments cooperation. LNG Cost Pressure for India: A report warns September LNG price hikes could squeeze downstream margins as India stays exposed to elevated spot imports. ASEAN Creative Economy: Indonesia and the Philippines agreed to boost cross-border creative economy cooperation, including the Batik-Barong initiative. Food & Agriculture: Iran hit chicken self-sufficiency, while Nepal flood losses may be partly cushioned by low insurance penetration and reliance on reinsurance. Business & Deals: NBCUniversal and U-Next ink a Japan partnership to bring Universal+ to U-Next from Oct 2026; Singapore’s Splash Singapore shipping conference agenda is set for Sept 24.

Philippines Macro & Inflation: A World Bank warning flags the country’s “policy-rich but implementation-poor” approach to climate and disaster risk planning, with weak enforcement and uneven local capacity undermining results. FX & External Accounts: The Philippine peso slid to a record low near ₱62.27 per dollar, hurt by energy import costs and a widening trade deficit. Public Finance: NG gross borrowings jumped 75.4% in July as debt issuances were front-loaded, while foreign loan receipts fell. Inflation Watch: Polls suggest August inflation may ease to around 6% but stay above the BSP target range. India Capital Flows: Foreign portfolio investors bought Indian equities again in August, adding ₹30,919 crore for a second month. Central Asia Connectivity & Diplomacy: PM Modi’s SCO trip spotlights India’s push for security, connectivity and trade with Uzbekistan and Kyrgyzstan. West Asia Risk & Trade: G20 talks put Iran sanctions and tariff disputes front and center, keeping global policy uncertainty high. ASEAN Resilience for MSMEs: ASEAN leaders stress stronger, smoother regional trade and logistics to help small firms absorb shocks. Thailand-Africa Link: Thailand seeks deeper ties with Ethiopia via higher-level political consultations and expanded Africa partnership. Air Travel Demand: United Airlines plans a new nonstop SFO–Okinawa route for summer 2027, signaling continued Asia-Pacific network growth.