AGP Executive Report

APEC Outlook: APEC says the Asia-Pacific economy can still grow, forecasting 3.2% in 2026 and 3.0% in 2027, with resilience driven by tech-enabled trade and digital services even as energy prices, weather shocks and trade uncertainty bite. Philippines Growth Watch: AMRO warns the Philippines is set for its weakest growth in nearly two decades (GDP 3.4% in 2026), as oil shock-linked inflation squeezes consumer spending. Singapore AI Skills: Singapore’s accountancy push is accelerating, with 15,000+ professionals enrolled in ISCA’s AI Fluency Programme to build AI-ready, responsible workplace capability. Corporate Leadership: TVS Motor names Peyman Kargar as CEO from Jan 27, 2027, aiming to lift growth via product innovation and premiumisation. Malaysia Labour Debate: Malaysia’s manufacturers’ federation calls a proposed minimum wage hike excessive, warning of knock-on pressure on competitiveness and jobs. Climate & Disruption: Typhoon Saudel disrupts travel across China’s Zhejiang, while Nepal’s floods are reported to have caused over Rs 200bn in preliminary damage. Energy Transition & Buildings: Arup and Saint-Gobain launch a climate-adaptation buildings report in Hong Kong, linking AI-enabled design with resilience needs across Asia-Pacific.

APEC Prep Push: Senior officials at APEC’s Dalian meeting urged stronger cooperation on AI, free trade and regional economic integration ahead of the November leaders’ summit in Shenzhen. Markets & Tech: Asian stocks climbed for a third straight session as Nvidia’s record results boosted AI-linked sentiment, though Japan lagged. Southeast Asia Finance: Japan’s SBI Holdings plans a $270m investment for a 20% stake in Indonesia’s Ajaib, valuing the broker at about $1.35bn and signaling deeper Japanese bets on digital finance. Philippines Growth Watch: AMRO cut the Philippines’ 2026 GDP forecast to 3.4% on weaker consumption and a slump in investment, with a partial rebound expected in 2027. Ghana Debt Market: Bank of Ghana said improving macro stability is reopening the door for deeper, more resilient debt capital market growth—if policy credibility holds. India Logistics Upgrade: FedEx will invest about $150m in a fully automated air cargo hub at Delhi’s GMR Cargo City to scale processing and speed shipments. Crypto Policy Angle: TRM Labs appointed Ziqing Ang to lead APAC policy work as regulators face fast-evolving AI and financial-crime risks. Energy Connectivity: India’s MEA said Chabahar remains key for secure, commercially viable Central Asia access. Local Business Note: Tous Les Jours shut its Montclair, New Jersey bakery after nearly two years, while keeping other NJ locations open.

Philippines Inflation Watch: Bangko Sentral ng Pilipinas said inflation hit 6.2% in July 2026, but blamed the higher-than-neighbors gap on weak local industrial depth in oil and AI—sparking questions in a Senate hearing versus Vietnam, Thailand and Malaysia. Southeast Asia Consumer Tech: Omdia reported Southeast Asia smartphone shipments fell 23% YoY in 2Q26 to 19.3m units, the lowest since 2014, even as market value held up on higher average selling prices. ASEAN Digital Policy: ASEAN is discussing how to reduce negative impacts of digital transformation on traditional media, focusing on sustainability, misinformation risks and ethics. Indonesia Energy Transition: Indonesia’s energy transition could spur new growth via investment and industrialization, with Airlangga citing biodiesel expansion and data-center demand as key supports. ASEAN Digital Economy: Indonesia says implementing the ASEAN DEFA could lift the regional digital economy from about $1tn to $2tn, with Indonesia potentially taking 30–40%. South Asia Markets: India’s Sensex and Nifty opened lower on HDFC Bank and IT weakness amid geopolitical caution and softer crude. Business & Trade: Shein’s Hong Kong IPO pricing nears its range as it seeks a valuation far below past peaks, while Sri Lanka ranks near the bottom in a global minimum-wage comparison. Corporate Moves: Tencent Cloud partners with TruKKer to migrate logistics operations to Saudi Arabia’s cloud region and roll out AI coding tools.

Philippines Monetary Policy: Bank of America says the BSP is among the few Asian central banks still keeping a positive rate gap versus the Fed, with a likely final quarter-point hike to around 5% as inflation stays above target while growth slows. Banking & Property: BSP data show Philippine banks cut real-estate exposure to the lowest share in over seven years, as higher borrowing costs and uncertainty weigh on demand. ASEAN Integration: The Philippines’ chairmanship is framed as a chance to push deeper ASEAN integration and resilience as the bloc gains economic and strategic weight. ASEAN Labour & Green Jobs: Malaysia leads the ASEAN green jobs agenda for 2026-2030, stressing fair, inclusive workforce transitions and green-skills planning. ASEAN Digital Economy: ASEAN’s Digital Economy Framework Agreement is moving toward implementation, aiming for interoperable digital identity and trusted cross-border services. Inflation Watch (PH): UOB flags the Philippines as an inflation hot spot as Middle East tensions and extreme weather threaten energy and food prices. Iran Sanctions & Oil Flows: Reports say tens of millions of barrels of Iranian crude sit on tankers beyond the US blockade, testing Washington’s “zero leakage” push. Asia-Pacific Cybersecurity: Kaspersky reports 75m+ blocked attacks in APAC in H1 2026, with attackers increasingly using AI to scale threats. Cambodia SMEs: Small Cambodian manufacturers see demand rise after Thai boycotts, but red tape and registration hurdles slow scaling. India Markets: Reuters polling shows analysts trimming India’s growth and equity outlook as foreign funds rotate to other Asian markets.

Data Centres & Power Crunch: Southeast Asia’s AI data-centre boom is colliding with limited electricity supply, with operators already weighing self-built generation as grids tighten and demand surges. Singapore Infrastructure Push: Digital Realty was provisionally allocated 50MW under Singapore’s DC-CFA2 for an AI-ready Jurong Island campus, with over half powered via green energy pathways. Malaysia Tech Investment: Google plans a US$2bn data-centre campus in Selangor, projecting thousands of jobs during construction and major local economic activity. Philippines Connectivity & Costs: Equinix highlights the Philippines’ “data problem” as AI adoption accelerates, arguing for responsible infrastructure as electricity costs rise. West Asia Trade Shock: Pakistan and Iran discussed reopening the Strait of Hormuz to prevent escalation and protect energy flows, while US “economic onslaught” sanctions on Iran’s revenue streams keep markets jittery. Markets Watch: Asian shares leaned higher as oil prices eased on Hormuz reopening hopes, with Nvidia earnings in focus. Indonesia Monetary Leadership: Destry Damayanti faces a parliamentary fit-and-proper hearing for central bank governor, amid investor concerns over policy autonomy and transparency. VAT Basics: A quick explainer breaks down how VAT works versus sales tax, focusing on consumption at the final stage. Sustainability in Practice: Solomon Water and Fiji’s Water Authority completed an ESMS workshop to better connect environmental and social risk management across departments. Tourism Connectivity: New direct long-haul routes are reshaping Sri Lanka’s access to Europe and Australia, reducing reliance on Gulf transit hubs.

APEC Food Security: APEC’s 11th Food Security Ministerial in Hangzhou backed new principles putting innovation and AI at the center of resilient agri-food systems, with a push for better data, early warning and tech across the value chain. China-India Boundary Talks: China’s Wang Yi told India it’s ready to “eliminate differences” and return dialogue to the mainstream, as both sides discussed the boundary question and bilateral ties. US-Iran Pressure: Markets are watching the Strait of Hormuz and the latest US “economic D-Day” sanctions campaign, with oil easing after fears of broader penalties receded. Japan Power Costs: The IEA forecasts Japan’s wholesale electricity prices could jump nearly 40% in H2 2026 as LNG costs rise amid Middle East turmoil. Air Travel & Connectivity: United unveiled its biggest-ever international expansion with 10 new Europe-Asia cities from March 2027, while WestJet and Air Canada ran sales on flights from Vancouver. Business & Tech: Delinea expanded its APAC leadership for sales and channel growth; ONEKEY warned German firms are lagging on EU OT cyber rules ahead of the Sept 11 deadline. Sports: Sri Lanka replaced Dewmi Vihanga with Nimasha Meepage for the Women’s T20 Asia Cup after an injury.

West Asia Shock to Markets: US Treasury’s “Operation Economic Outcast” escalates pressure on Iran with new secondary sanctions aimed at digital assets, technology, gold, aviation and shipping, while investors weigh oil-price risk and bond-market jitters. Regional Diplomacy: Pakistan’s army chief Asim Munir met Iranian leadership in Tehran to discuss de-escalation and reopening the Strait of Hormuz, as talks remain stalled. ASEAN Food Security Push: A Cambodian legislator urged ASEAN to boost climate-resilient agriculture to protect food supply amid extreme weather and degradation. Malaysia Digital Infrastructure: Malaysia is pitching data centres as a deliberate compute strategy, with RM144.4bn approved for data-centre and cloud investments (2021–mid-2025), and a focus on turning infrastructure into local value. Philippines Ease of Doing Business: The SEC proposes a “One Business Start Date” so firms can begin operations after primary registration while other permits are processed in parallel. Startup & Deal Flow: KKR and partners to acquire Japan’s Ci FLAVORS; Hong Kong pet-food firm Buddy Bites raises $4.2m Series A; Singapore’s Vocalbeats.AI reports strong app monetisation momentum. Sports-Asia Note: Sri Lanka replaced injured Dewmi Vihanga with Nimasha Meepage for the Women’s T20 Asia Cup in the UAE.

US-Iran Economic War: The US launched “Operation Economic Outcast,” signaling a new push to sever Iran’s financial lifelines, while Reuters reports Washington is threatening tougher sanctions on countries doing business with Iran but holding off on penalties for now. Gulf Shipping Shock: Iran blacklisted 45 tankers over Hormuz rules as attacks and rerouting keep pressure on oil flows and global trade routes. UAE Cuts Off Iran: The UAE halted all trade and financial transactions with Iran, underscoring how the conflict is reshaping regional commerce. Cambodia SME Export Bottleneck: A reform to speed business registration helps, but one key gap remains: export licensing costs can still be around $4,000, blocking small home-based exporters from using ASEAN tariff benefits. Philippines Growth Watch: ASEAN growth slowed as investment and construction weakened; the Philippines’ Q2 slump dragged the ASEAN-5 average, while Davao Region posted P1.14T GRDP and 5.1% growth. India Digital Inclusion: India is near gender parity in bank accounts, but women lag sharply in online banking use. Cybersecurity Push: SEBI launched India’s Cyber Suraksha Portal to share vulnerability warnings and incident insights. Corporate & Deals: TCS to buy Porsche’s German IT unit MHP and set up an AI Mobility Centre; Zetrix AI posted RM269.25m Q2 profit on AI/Web3 services. Energy Transition: Tata Power Renewable commissioned a 190.5MW solar-plus-115MWh battery project in Rajasthan. ASEAN Climate Security: Philippines, as ASEAN chair, urged integrating climate resilience into the region’s security agenda and mobilizing climate finance.

Geopolitics & Energy: Oil slid as investors awaited US details on “most crushing” Iran sanctions, with Hormuz risk still in focus and Asian stocks mostly weaker. Markets & Tech: Alibaba’s HK share sale plans and Samsung’s massive buyback rattled sentiment ahead of Nvidia’s earnings, keeping AI-linked trading jittery. Japan–China Trade Ties: Cross-party Japanese lawmakers flew to Beijing to restart dialogue after Takaichi’s Taiwan remark fallout, with economic spillovers a key concern. Malaysia Labour Policy: Malaysia targets a 10% foreign-worker cap by 2030, pushing firms toward automation and tech instead of cheaper labour. APAC Real Estate: India dominated office leasing in H1 2026, taking over 70% of Asia-Pacific volumes as Grade A demand and global capability centres stayed strong. Healthcare & Innovation: InterSystems will host InterSystems Asia READY 2026 in Bangkok on trusted data and interoperability for practical AI in healthcare. ADB Development: ADB launched an $800k AI technical assistance project for resilient infrastructure and adaptation, including Azerbaijan and other Asia-Pacific economies.

Philippines Monetary Policy: The BSP is widely expected to lift rates by 25 bps to 5% on Aug. 27 as inflation stays sticky and the peso weakens, with reserves also under pressure. Philippines Investment Outlook: HSBC and other stakeholders point to renewables and AI-linked data centers as “sweet spots” to pull in foreign capital, while the World Bank warns the country’s fragmented data systems could slow responsible AI progress. US-ASEAN Business Push: The US-ASEAN Business Council urges the Philippines to speed up consistent implementation of reforms, cut compliance friction, and digitize government services to unlock investment. ASEAN Centrality: Singapore PM Lawrence Wong says ASEAN must strengthen unity and integration while building resilience beyond the region amid West Asia risks. Malaysia Engineering Safety: Malaysia’s works minister stresses safety over cost-cutting at the Board of Engineers Malaysia awards. Azerbaijan-Uzbekistan Alliance: Leaders reaffirm a “single geopolitical and geo-economic region,” with “New Tashkent” highlighting job creation and urban investment. South Korea Shipping: Seoul sent its first test container ship via the Arctic route to Europe, as shipping reroutes around Middle East-linked disruptions. GCC Diversification: A study flags critical minerals as a new GCC investment focus to secure long-term supplies and resilience. Myanmar SEZ Violence: Reuters reports junta forces burning villages to clear land for a Russia-backed special economic zone near Dawei. India Capital Flows: FPIs return to Indian equities in July and August, helped by steadier currency and earnings. Textiles in Bangladesh: A major textile exhibition series starts Sept 2 in Dhaka, targeting machinery, yarn, fabric and sustainable processing.

West Asia Security & Trade: Iran’s top security chief Mohsen Rezaei warned the Strait of Hormuz won’t reopen until the US “corrects its behaviour,” as Washington prepares fresh, tougher economic pressure on Tehran—raising risks for Gulf and Asian energy flows. Diplomacy: Iran and Pakistan held a phone call between their top officials to discuss “effective solutions” for peace and stability amid Hormuz tensions. Apec Trade Politics: The US said it will take an “America First” approach at Apec talks in China, aiming to open more opportunities for US business in areas like agriculture, energy and health. Central Asia Politics: Kazakhstan opened parliamentary elections for its new single-chamber Kurultai, expected to further strengthen President Tokayev’s grip. Malaysia Capital Markets: Malaysia’s IPO market is tightening ESG disclosure expectations as NSRF expands to Main Market issuers, with investors warning weak reporting could hit valuations. Vietnam Markets: Vingroup and other firms were added to FTSE Russell global indices, a step toward Vietnam’s upgrade from frontier status and potential foreign inflow watch. Oman-Iraq Connectivity: SalamAir launched direct Muscat–Erbil service from Oct 25, targeting tourism and business travel. Turkey Defence Industry: Aselsan said it aims for $30bn order backlog by year-end, boosted by record first-half bookings.

UAE–Russia Trade: The UAE-Russia Trade in Services and Investment Agreement (TISIA) has entered into force, aiming to boost market access for services and protect investors, with priority focus on fintech, healthcare, transport, logistics and professional services. ASEAN Diplomacy: ASEAN held its Summer Festival 2026 in Astana, drawing 1,000+ visitors and using culture to push people-to-people links plus trade, investment, education and tourism. India–Oman Infrastructure Trade: Oman’s Rex Fuels Global Expo & Conference 2026 is set for Aug 31 in Muscat, spotlighting road-building materials like bitumen as India expands highways and trade corridors. Vietnam Business Shift: Vietnam’s firms face a “strategic inflection point” as old cost and capital advantages fade, pushing a move toward data-driven, trust-based competitiveness. Digital Economy & Scams: Philippines messaging use surged (WhatsApp up sharply), while Asia-Pacific central banks formed a task force to share intelligence and curb AI-fueled digital scams. Arctic Shipping Test: South Korea launched a trial cargo voyage via the Northern Sea Route to assess viability as Middle East disruptions push exporters to new lanes. Market Mood: India stocks lag peers in 2026, with BofA data showing a 9.1% decline in USD terms. Energy Costs: European gas prices jumped above $800 per thousand cubic meters as LNG demand from Asia tightens supplies.

Malaysia Trade Momentum: Malaysia’s total trade hit RM2.16 trillion in Jan–Jul 2026, up 24.7% y/y, with exports rising 29.2% and a trade surplus jumping 138.7% to RM170.5bn, led by stronger export demand and growing MSME participation. US-Iran Sanctions Clash: Iran denounced new US economic sanctions as unlawful “economic warfare” and an extraterritorial sovereignty grab, as Washington prepares further pressure that could ripple through key trading partners, including China. ASEAN Skills & Mobility: Vietnam moved to implement the ASEAN Qualifications Reference Framework, aiming to make cross-border skills recognition easier for workers and students across the bloc. ASEAN Semiconductors: Singapore and Vietnam are pushing a more connected semiconductor ecosystem, pairing Singapore’s R&D and manufacturing strengths with Vietnam’s workforce and electronics scale. Energy & Trade Disruption Watch: With West Asia tensions and chokepoint risks reshaping shipping economics, analysts highlight how Hormuz and Bab el-Mandeb disruptions can quickly hit energy prices, freight costs and supply chains. Pakistan Digital Push: Pakistan and Google signed an MoU targeting $30bn in IT exports and digital economy by 2030, including AI access, career certificates and an AI centre of excellence in Islamabad. India Water Infrastructure: India and the ADB agreed a $230m loan to upgrade Chennai’s water supply and sewerage, adding new pipelines and pumping stations to improve resilience and service reliability.

Digital Supply Chains: HAVI will open its TechHUB in Kuala Lumpur in November, aiming to scale AI-driven forecasting, data analytics, automation and IoT fleet management for Asia-Pacific logistics. Cross-Border Finance & Industry: Maybank and Singapore Manufacturing Federation signed an MoU to expand access to the Johor-Singapore Special Economic Zone, linking manufacturers with banking support for sustainable finance, trade and supply-chain financing. Defense Procurement: The U.S. approved a potential $125m sale to South Korea of AIM-9X air-to-air missiles and related equipment to bolster air defense and interoperability. China Property Fallout: Evergrande founder Hui Ka Yan was sentenced to life in prison in Shenzhen, with authorities citing multiple financial crimes tied to the developer’s collapse. India-Singapore Trade Push: Piyush Goyal met Singapore leaders and business groups, signing an MoU and focusing on fintech, sustainable infrastructure and agri-exports. EV Microcar in Vietnam: TMT Motors plans to launch the Nano S05, priced around VND148m, as one of Vietnam’s cheapest EVs. Fuel Price Shield (Korea): South Korea kept fuel price ceilings unchanged for four more weeks amid West Asia tensions and higher oil prices. Workplace AI Shift: JLL says most Asia-Pacific executives expect headcount to rise even as AI changes jobs, with companies upgrading offices for human-machine collaboration. Regional Energy & Climate Risk: Philippines faces strong El Niño risk, with guidance calling for urgent preparedness as drought and heat could disrupt agriculture and water needs.

Colgate-Palmolive Leadership Shuffle: Prabha Narasimhan is moving to an Asia-Pacific role as Manish Anandani takes over as India MD and CEO, underscoring how consumer giants are reorganising for faster growth. Markets & Rates Mood: Asian stocks stayed mixed as US Treasury moves failed to fully calm bond-yield jitters; oil and yields kept pressure on risk appetite. Crypto & Risk Appetite: Bitcoin surged past $75,000 in Asia, riding renewed optimism after US Treasury buyback plans. ASEAN Energy Playbook: Tenaga Nasional says “operational excellence” now means grid resilience, real-time visibility and safer renewable integration—key as ASEAN power systems get more interconnected. Cybercrime Warning: Experts warn scam gangs could use agentic AI to automate fraud at scale, raising the stakes for Asia-Pacific cyber defenses. Philippines Energy-Food Debate: A new critique flags agrosolar risks of land displacement and governance gaps, warning it could become a “green land grab” if scaled poorly. India-Singapore Trade Push: Piyush Goyal highlights deeper B2B ties and agri-food export expansion via Singapore roadshows. Corporate Moves: Clariant opened two new China R&D labs to boost local innovation, while Borouge approved an interim dividend after strong shareholder returns.

Philippines-US Investment Push: Philippines Executive Secretary Ralph Recto urged American firms to expand in semiconductors, electronics and critical minerals—especially advanced packaging, IC design, R&D, front-end capabilities and processing—calling for technology transfer and talent training, not just buying. Digital Payments & Cybersecurity: Singapore and India used the 4th India-Singapore Ministerial Roundtable to deepen ties, including faster UPI–PayNow linkage growth and work toward Project Nexus for instant payments connectivity. Robotics Betting: Prosus, chaired by Koos Bekker, says general-purpose robots could hit ~$20,000 as AI reliability improves, betting on the next automation wave. Markets & Energy: Asian stocks retreated as bond-yield fears lingered while oil rose on Iran-related risks. China Evergrande Fallout: China sentenced Evergrande founder Hui Ka Yan to life in prison and fined the group and affiliates over fraud and other offences, underscoring property-sector strain. India Trade in Rupees: India eased rules so export contracts and payments with non-ACU countries can be denominated in rupees, aiming to boost rupee trade benefits. Plastic Waste Rules (Bangladesh): Bangladesh’s new Extended Producer Responsibility guidelines shift post-use plastic waste responsibility to producers, importers and brand owners.