AGP Executive Report

BRICS in the spotlight: India is hosting the 18th BRICS Summit in New Delhi, with leaders set to push “resilience, innovation, cooperation and sustainability” amid West Asia and Ukraine tensions, while a BRICS Business Forum opens with trade, supply chains and digital economy talks. Energy chokepoints and costs: A fresh warning highlights how instability around the Red Sea and the Strait of Hormuz could ripple through Asia’s shipping, insurance and inflation. Oil shock pressure: US diesel prices hit a record $6+ per gallon as crude stays above $100 and refinery capacity strains. AI chip supply chain split: Intel’s EMIB is gaining traction for inference-class AI chips as major firms diversify away from Nvidia/TSMC’s CoWoS. Central Asia diplomacy: South Korea will host the first Korea–Central Asia Summit in Seoul, aiming to deepen cooperation on energy, critical minerals and connectivity. EV readiness in India: HERE-SBD EV Index 2026 ranks Telangana top for EV readiness, while Delhi slips to 17th. Cybersecurity expansion: Cyble appoints Steve Ingram to lead US growth for its AI-native security push.

BRICS Summit Watch: India is set to host the 18th BRICS summit in New Delhi, aiming to keep Global South priorities front and centre on food, energy, resilient supply chains and inclusive growth, while leaders including Putin and Xi weigh in amid West Asia differences. West Asia & Energy: Oil prices jumped to multi-month highs as Middle East tensions and shipping chokepoints raise supply fears, while the ECB lifted rates again, adding to inflation worries across markets. Pakistan Investment Push: British International Investment (BII) met Pakistan’s finance minister to discuss expanding its 2026–31 investment plans, including at least $2 billion across Asia and Africa with a strong focus on Pakistan’s infrastructure, climate finance and private capital. Cybersecurity: Indonesia is seeing Android banking app-cloning attacks using Google Work Profile features, with researchers linking losses to the Gigabud Trojan. AI & Business Pressure: Singapore CEOs face rising pressure to prove measurable AI returns, with “shadow AI” and governance gaps flagged as key risks. Healthcare Deal: LeapFrog invested about $42m in Marengo Asia Hospitals to fund expansion and double beds to 4,000. Tech & Trade: Wood Mackenzie says Southeast Asia’s LNG demand could get a major boost from AI-driven data centre growth, especially in Singapore, Malaysia, Indonesia and Thailand. Culture & Media: Chinese microdramas in minute-long episodes are booming across Southeast Asia, driving heavy app downloads despite political tensions.

BRICS Summit Watch: India is pushing for a workable BRICS leaders’ declaration as sherpas scramble to bridge West Asia language differences, with consensus seen as achievable but “very challenging” given UAE-Iran divides. Energy & Markets: Oil stayed in focus as Brent pushed above $100 amid West Asia tensions, weighing on Asian stocks and keeping inflation worries alive. AI for Business: Malaysia’s deputy minister urged the country to become “AI-first” by building digital foundations for corporations, SMEs and start-ups across ASEAN—not just consuming AI tools. Tech Security: Confidential computing is expanding beyond CPUs to GPUs, containers and agentic AI, as enterprises seek to protect data and models while workloads run. Asia-Pacific Trade & Logistics: Subic Bay is pitching port expansion and modernization to strengthen the Luzon Economic Corridor and boost Subic’s role as a regional logistics hub. Aviation Innovation: EHang says regulators are warming to its low-altitude economy push, with DGCA/61 interest in its fast-track sandbox projects. Sports & Politics: India starts as overwhelming favourites against Bangladesh in the Women’s Asia Cup semifinal, with cricket rivalry shadowed by strained diplomacy.

AI Infrastructure & Cloud Expansion: NVIDIA is teaming up with Australian cloud and data-centre partners to expand land, power and “shell” capacity for DSX AI factories, aiming for up to a 2-gigawatt buildout by 2027. Cyber Skills & Risk: A Fortinet report warns Asia-Pacific organisations are still underfunding cybersecurity as budgets treat it like a cost, leaving training and incident readiness behind. Regional Trade & Digital Commerce: China’s Horgos border hub is drawing hundreds of foreign livestreamers, with cross-border e-commerce turnover surging in 2025 and early 2026. Health Policy via Rewards: Macau is rolling out a yearlong preventive health competition through its Macao One Account app, using points and screenings to push healthier habits. Public Safety Tech: Macau police say zebra-crossing violations nearly doubled, and plan 3D scanners plus AI upgrades for emergency calls. Markets & Energy Shock: India’s Sensex slid 813 points as West Asia tensions lifted crude above $100. BRICS Summit Tensions: India’s BRICS declaration push faces friction over how to address the West Asia conflict. Business & Mobility: TransNusa launched a Bali–Phuket nonstop route, cutting travel time and boosting tourism links.

West Asia Oil Shock: Brent crude pushed past US$100 a barrel, stoking inflation fears and weighing on Asian markets, with Malaysia’s ringgit easing and Bursa Malaysia closing nearly flat as investors watched US CPI and possible tighter policy. Markets & Risk: India’s Sensex and Nifty slid to three-month lows as crude jumped, while analysts warned higher import bills could hit the rupee and corporate margins. Digital Trust in ASEAN: Thailand urged stronger cross-border cooperation to curb scams, arguing that network expansion must be matched with user protection and participation in an AI-driven economy. AI & Identity Security: Trust Stamp accelerated onboarding for financial institutions after reports of 166 million identity document photos leaked from an ID scanning provider. Energy-Asia Business Links: UAE-Germany ties got a boost with a focus on AI, clean energy and advanced manufacturing, while Azerbaijan highlighted port connectivity gains at a CICA forum. Tech & Infrastructure: Thailand suspended dozens of data centre projects as regulators draft new rules, signalling an AI backlash spreading across Asia.

Pakistan–ASEAN Economic Push: Pakistan’s ICCI marked ASEAN Day with diplomats and business leaders urging a more structured, result-oriented partnership, citing about US$10b in trade and calling for stronger private-sector links and market access. Business Verification: Dun & Bradstreet SAME launched a Business Credibility Report to help firms validate credentials for credit and partnerships, reflecting rising demand for verified data. China Trade Momentum: China reported imports rising 22% year-on-year in August, outpacing exports for a sixth straight month, as industrial upgrading and opening-up keep supply chains moving. Aviation Climate Tech: Cathay Pacific and Google began trials of AI contrail mitigation, aiming to reduce aviation’s climate impact using Asia-Pacific real-world data. Middle East Energy Risk: Houthi attacks hit Saudi Aramco facilities including Jazan, raising fears of further oil-price pressure. Central Asia Security Debate: Analysis ahead of the Shanghai Cooperation Organization summit says the “Silk Road” framing highlights how Central Asia is pulled between big powers’ ambitions. Healthcare Innovation: GenesisCare in Australia is set to be the first cancer provider to offer ZAP-X gyroscopic radiosurgery.

Markets & Energy: Asian stocks drifted lower as oil pushed toward $100 a barrel and investors braced for US inflation data and possible Fed rate hikes, with India’s Sensex and Nifty both ending down for a second day amid West Asia tensions. Business & Tech: ABB plans to expand its Penang footprint for advanced automation, while Haivision and Chyron teamed up to simplify camera-to-cloud live production workflows. AI in Operations: Bidgely will showcase AI smart-meter analytics for utilities at Enlit Asia, and Luda Technology says an AI inquiry-and-quotation system cut turnaround time from about 30 minutes to 3 minutes. Regional Connectivity: Kazakhstan will launch flights to Singapore via Fifth Freedom routes, aiming to boost tourism and investment links. Climate & Risk: Nepal’s floods underline how extreme weather can quickly turn into economic shocks across the region, as El Niño raises the odds of shifting rainfall and heat. Sports: Deepti Sharma’s eight wickets in three games helped India reach the Women’s T20 Asia Cup semi-finals.

Commercial Insurance & Capex Boom: Swiss Re Institute says AI data centres and renewable energy could drive about US$200bn in cumulative commercial insurance premiums by 2030, as risks become bigger and more concentrated. Macau Economy & Tourism: Macau targets MOP23 billion in investment under its Five-Year Plan and aims to open new Portuguese- and Spanish-speaking tourism markets, while officials push non-gaming diversification toward a 60% GDP goal by 2030. Community Commerce: A Macau business leader warns that “community commerce” should be treated as core infrastructure, not an afterthought, citing gaps in amenities in public housing areas. Guangdong-Macau Integration: Hengqin says Macau-linked firms there rose 75% in five years to 8,148 companies, with emerging industries driving added value. West Asia Focus: India’s Jaishankar chairs India–West Asia talks, stressing protection of the 10 million-strong diaspora and energy/fertiliser security amid conflict. Cross-border Payments: DBS and Citi completed a weekend tokenized USD transfer from Singapore to New York in minutes, signaling faster TradFi settlement. Asia Markets & Oil: Global stocks are mixed as chip shares lift Japan and South Korea; Brent stays near US$100 amid Strait of Hormuz tensions. Singapore Hiring: ManpowerGroup finds Singapore employers are more selective, with nearly half planning to keep headcount steady in Q4 2026.

Aviation Policy: Malaysia is still deciding whether to impose a compulsory carbon tax on aviation, with Transport Minister Anthony Loke saying the country will follow a phased approach aligned to ICAO’s net-zero goal for 2050. Regional Aviation Talks: Malaysia is also hosting the 61st DGCA/61 civil aviation conference in Kuala Lumpur, bringing together 500-plus participants from 35 countries to discuss “Smart Skies” priorities from safety and security to sustainability and emerging tech. Connectivity Push: Bangladesh’s telecom minister Faqir Mahbub Anam says the focus is shifting from simply expanding connections to delivering quality, affordability and reliable “meaningful connectivity,” while preparing for AI, cybersecurity and 5G. Education Benchmarking: Slovakia will host the regional release of PISA 2025 results on Sept 8 for 31 countries across Central, Eastern and Northern Europe and Central Asia. Media Cooperation: The Asia-Pacific Media Forum in Shenzhen drew 400-plus representatives and launched new cooperation mechanisms, including a “Shenzhen Consensus” and a digital media intelligence centre. Business Sentiment: India’s CII business confidence index jumped to 66.0 in Q2FY27 as firms cite easing disruptions from West Asia conflict. Critical Minerals & Diplomacy: Afghanistan is pitching critical minerals and infrastructure investment as a basis for renewed engagement with the US, including a possible embassy reopening.

Asia-Pacific Media Forum in Shenzhen: More than 400 delegates from 40+ countries backed a “Shenzhen Consensus” to deepen regional media cooperation, with new initiatives on tech sharing, joint content and training ahead of APEC. Markets & rates: Asian stocks looked set to rise as strong US jobs data boosted expectations for Fed action, keeping yen moves in focus. West Asia risk to oil: Brent edged up after Iran said it targeted tankers near the Strait of Hormuz, raising supply and inflation worries. SME push in Sri Lanka: FCCISL and the industry ministry outlined a plan to identify and grow 1,000–5,000 scalable SMEs nationwide under a new SME strategy framework. Healthcare & biotech: Wooree Group urged scientific validation for “liposomal” claims after showcasing its liposome ecosystem at Vitafoods Asia in Bangkok. Business listings: Singapore’s SGX is seen as turning around as IPO activity is expected to pick up in the second half of 2026. Tech governance: A Southeast Asia focus story highlights the need to keep enterprise AI useful after deployment, not just launch it.

BRICS Summit Watch: India hosts the 18th BRICS meeting on Sept 12-13, but officials say there’s no consensus on expanding the bloc further; the harder task is aligning on West Asia as differences between Iran and the UAE complicate a joint communique. Semiconductor Push: India launches the second phase of its semiconductor mission with about US$13 billion, aiming to move from “Make in India” toward “Engineer in India” by strengthening design, engineering and workforce skills. China Trade Headwinds: China’s export-led growth faces mounting US and Europe pushback, with tariffs and protectionism rising as domestic demand, real estate and jobs show strain. ASEAN SME Spotlight: Nominations open for the ASEAN Business Awards 2026, with categories spanning AI, sustainability, cross-border value chains and regional integration. AI in Education: Bangladesh’s education minister seeks Google’s help to modernise classrooms and teacher training using AI, including “One Teacher, One Tab.” Energy and Markets: OPEC’s chief says stabilising oil markets is the priority amid West Asia tensions, while Malaysia keeps its policy rate at 2.75% as growth stays resilient and inflation contained. Geopolitics and Security: Iran warns the US that “proportionate responses” are over, as tensions over strikes and maritime risks continue to ripple through the region. Media Cooperation: China chairs APEC and hosts preparations for an Asia-Pacific media partnership in Shenzhen, aiming to boost regional cooperation and a shared voice in the AI era.

India Politics & Youth: Gen Z protests are reigniting democratic debate across South Asia, with India’s unrest linked to paper-leak fallout and youth frustration over shrinking opportunities. India Economy & Diplomacy: PM Modi used SRCC’s centenary to defend India’s 7.8% growth, dismiss “Fragile Five” critics, and tie the message to resilience amid West Asia and trade shocks. Pakistan Defence Day: Pakistan’s PM Shehbaz Sharif and President Zardari honoured 1965 martyrs and veterans, reaffirming unity, sovereignty and security. West Asia Maritime Tensions: Qatar urged de-escalation and rejected politicising Hormuz navigation as Iran and the US trade accusations over attacks on commercial shipping. UN & US Clash: The UN voted on a map projection, with the US opposing and accusing the move of broader ideological aims. Pakistan Economy & Trade: Business groups pushed ADB-backed private-sector growth and called for revamping the ECO Trade Agreement to unlock intra-regional trade. Health & Tech: A China study suggests AI radiomics could predict whether certain lung nodules are invasive, potentially reducing unnecessary surgery. Sports: India crushed Pakistan in the Women’s Asia Cup, winning by seven wickets after Pakistan were bowled out for 55. Business: BYD says it will announce its next Malaysia EV expansion step within a week.

APEC Media Push: The Asia-Pacific Media Forum opened in Shenzhen with more than 400 delegates from 40+ countries, as Xinhua and partners launched an Asia-Pacific Media Partnership committee to boost cross-border cooperation and amplify the region’s voice ahead of the November APEC leaders’ meeting. AI & Trust in Newsrooms: Malaysian and other media leaders urged shared professional standards for AI use, warning that deepfakes and automated misinformation can spread fast unless mainstream outlets strengthen fact-checking and accountability. Regional Connectivity for SMEs: APEC SME discussions in Guangzhou highlighted how AI-driven automation is helping smaller firms cut costs and improve efficiency, with a Malaysia rubber processor using a Guangdong-developed robotic system to reduce labour needs. India Investment Outlook: Investcorp said it plans 2–3 deals a year in India, targeting sectors like healthcare, pharma, tech and industrials, as it builds on recent investments. Climate Warning: UNEP’s “Limiting Overshoot” report warned the world is close to breaching the 1.5°C warming threshold, stressing that some climate impacts may be irreversible. Business & Markets: India’s 7.8% GDP growth sparked debate on whether everyday gains are reaching people, while investors watch how markets react amid ongoing geopolitical and oil-price pressures.

SCO’s Expanding Reach: The Shanghai Cooperation Organisation is shifting from a security forum to a wider network, with 28 outcome documents now covering AI, ports, energy and climate—raising the stakes of “multipolar” diplomacy. Pakistan’s Market-Making Finance: Pakistan’s finance ministry is working on a rupee-denominated, dollar-settled bond and exploring tokenising parts of its Eurobond debt, as it seeks to cut reliance on domestic banks and deepen capital markets. Pakistan–ADB Infrastructure Push: PM Shehbaz Sharif and ADB VP Yingming Yang discussed early groundbreaking for the ML-1 rail upgrade, linking it to freight logistics and industrial connectivity. China–APEC Trade Boost: Guangdong says trade with APEC economies hit a record 4.27 trillion yuan in the first seven months, up 22.1% year-on-year, ahead of Shenzhen hosting APEC leaders in November. Aviation Outlook: ICRA warns India’s passenger growth will slow to 1–3% in FY27 amid West Asia disruption, fuel costs and supply bottlenecks. AI Capital for Southeast Asia: ByteDance secured a $29.6b unsecured loan to fund AI infrastructure, including data centres across Southeast Asia. Quad Security & Tech: Quad sherpas in Delhi pressed for more practical cooperation on security, critical technologies and economic resilience. Energy Stress in the Region: Persistent power cuts are still hurting businesses and residents, underscoring how grid reliability remains a major economic risk.

Higher Education & AI: Malaysia’s higher education minister says AI must be “embedded” across all subjects, including humanities, not just technical courses, as universities refresh curricula for fast tech change. US Economy & Markets: A stronger-than-expected US jobs report (162,000 hires in August) keeps the unemployment rate steady at 4.1%, adding pressure to rate-cut hopes. AI Race & Diplomacy: Xi Jinping’s Egypt visit spotlights a new battleground in the US-China AI race, with Huawei-linked plans for AI data centres facing US counter-bids. Energy & Inflation Watch: Fitch links oil price jumps and AI capex to renewed inflation fears, lifting its 2026 oil price forecast. Asia-Pacific Business & Trade: Malaysia-Singapore logistics experts urge a single-window trade system to cut non-tariff friction for the Johor-Singapore SEZ. Clean Food Rules: Prosur will push natural clean-label ingredient solutions at Fi Asia as Asia tightens food standards. Sports & Soft Power: India and Japan set a men’s T20I on Sept 22 in Tochigi to mark 75 years of diplomatic ties and launch “Sport 75.”

Macau Tourism & Transport: Macau’s “Leisure Tour Bus 2.0” has carried nearly 37,000 passengers by mid-August, with extra Friday routes making up about a third of summer boarding; authorities are now weighing whether to make the service permanent. India–Belgium Ties: India and Belgium agreed to deepen defence and intelligence-sharing, set up an investment fast-track, double trade, and expand cooperation on semiconductors and renewable energy after PM Modi met Belgium’s Bart De Wever. APAC Markets Watch: Asia-Pacific stocks are jittery as US bond yields climb to decade-high levels, keeping investors on edge. US–Iran Pressure & China Role: US VP JD Vance says China is “willing to play ball” on economically isolating Iran, while warning the US has economic, military, diplomatic and covert options “on the table.” Energy Security at the Core: APPEC 2026 in Singapore will put energy security front and centre as Strait of Hormuz disruption reshapes Asia’s oil and shipping flows. Tech & Business Expansion: Fugro is building an AI-driven marine digital twin in Singapore to unify marine geodata and speed offshore decisions across Asia-Pacific. Legal AI in Asia: Law&Company launched LexPand AI, covering nine Asian jurisdictions on one multilingual platform for legal research and drafting.