AGP Executive Report

Philippines Economy Watch: Economists at the University of Asia and the Pacific expect growth to stay tepid in Q3 at about 2.3%, but rebound to above 4% in Q4 on a catch-up in infrastructure spending, record jobs (50.7m), export momentum and peak OFW remittances. Corporate Restructuring (Philippines): Jollibee is considering spinning off its international unit into a standalone company, with a possible separate listing on Hong Kong’s Main Board. Water Investment (Philippines/Vietnam): Metro Pacific Water plans P23 billion in investments by 2031 to expand sources, cut non-revenue water, and upgrade networks across the Philippines and Vietnam. Singapore Business Risk: A Coface survey says payment discipline among Singapore firms is worsening, with more companies reporting longer and more severe late payments. US-Iran Fallout/Markets: Renewed Iran–US exchanges pushed oil and yields higher and weighed on US stocks. SCO Security & Trade: SCO leaders adopted the Bishkek Declaration calling out “double standards” in counter-terror efforts while pushing broader security and economic cooperation. Asia Business & Tech: Shein’s Hong Kong debut saw shares fall after pricing, as tariff and logistics pressures squeeze its low-cost model; meanwhile, Red Hat APAC highlights that AI and hybrid cloud success depends on managing complexity, not just adopting tools. Regional Connectivity: Cebu hosts the East Asia Inter-Regional Tourism Forum to boost tourism and connectivity links with other East Asian regions. Aviation: Qantas plans to move 13 of its 14 weekly Singapore–Sydney A380 flights onto the superjumbo from December, aiming to protect premium demand. Sports: Pakistan women start the Women’s T20 Asia Cup with a win over Thailand, setting up a next match vs India.

Markets & Rates: Asia stocks drifted lower as oil prices rose on renewed US-Iran tensions and bond yields climbed, pressuring rate-sensitive names; New Zealand’s S&P/NZX 50 slid 0.9% on September 1 as central banks watch sticky inflation. India Growth Watch: India’s economy grew 7.8% in the April-June quarter, beating forecasts, with private investment picking up even as jobs lag and automation/data-centre demand reshapes hiring. West Asia Ripple Effects: At the SCO summit, PM Modi warned that conflicts in one region spill into global energy security, maritime trade and supply chains, while India pushes dialogue over battlefield solutions. Southeast Asia Logistics: Mapletree secured over US$500m for its emerging Asia logistics fund’s first close, targeting modern warehouses across Malaysia, India and Vietnam amid a shortage of institutional-grade space. AI & Semiconductors: Navitas begins shipping U.S.-made Gen 5 GaNFast chips via GlobalFoundries, while TRUMPF showcased integrated cooling for next-gen AI chip packaging at Semicon Taiwan. Energy Transition: Sigenergy launched an all-in-one smart storage system in Thailand, aiming to scale AI-powered residential energy management. Business Moves: Peregrine Cold Logistics entered Indonesia via a JV to expand tier-one cold storage, and Darwinbox appointed Pannie Sia to lead enterprise growth across Singapore, Malaysia and Indonesia.

Markets & FX: The Philippine peso hit fresh lows, with MUFG calling it Asia’s “weakest link” even after the BSP rate hike, as persistent US yields and hawkish Fed signals keep pressure on regional currencies. Energy & Rates: Oil jumped after renewed US-Iran strikes, pushing bond yields higher across Europe and Japan and reviving fears of more central bank tightening. West Asia & Trade: India’s PM Modi met Iran’s President Pezeshkian at the SCO summit, stressing dialogue, freedom of navigation and seafarer safety as the conflict reshapes shipping and costs. Tech & Cybersecurity: Rogue autonomous AI agents are raising new cyber risks, with reports of tool-using agents breaching systems without human involvement. FinTech & Payments: Sri Lanka is launching a FinTech Festival to plug into global investors and expand trusted payment rails. Business & Deals: ITC Infotech and Happiest Minds backed a combined AI-first services push, while Honda and Nissan confirmed software collaboration for next-gen vehicles. Climate & Industry: ACTEGA is expanding sealant manufacturing in China to shorten supply chains across Asia.

West Asia Diplomacy: PM Modi met Iran President Masoud Pezeshkian in Bishkek on the SCO sidelines, reaffirming India-Iran friendship and pushing to expand and diversify trade amid US sanctions and West Asia tensions; Modi also met Armenia’s Nikol Pashinyan to discuss defence, pharma, science and tech. India Economy: India’s GDP growth accelerated to 7.8% in Q1 FY27, led by 9.2% manufacturing growth and 11.9% investment demand, even as West Asia disruptions and higher energy prices weigh. Markets & Currencies: The Philippines peso stayed Asia’s weakest link as markets doubt BSP can cool inflation without hurting growth; separate forecasts suggest BSP may pause further rate hikes until early next year. Energy & Food Prices: Coffee prices jumped in July, with the ICO citing Brazil weather woes and a strengthening El Niño; oil and energy costs remain a key driver of regional price pressure. Asia-Pacific Tech & Industry: ViaSat-3 F3 entered service across Asia-Pacific; openKylin 3.0 pushed AI agent integration into its open OS; and GE HealthCare won CE Mark for Photonova Spectra CT, expanding access. Business & Finance: NeoVolta and SK On agreed a multi-year LFP cell and pack collaboration; AUB secured approval to nearly quintuple capital to scale digital payments and lending.

Middle East Tensions & Markets: Asia shares slid as fresh US-Iran fighting pushed oil higher and kept bond yields elevated, with investors watching US payrolls and inflation data for the next Fed move. Sanctions & Iran Finance: The US Treasury rolled out “Operation Economic Outcast,” threatening weekly secondary sanctions on banks tied to Iranian finance, while also tightening access around G20 meetings. Asean Leadership: Singapore prepares to steer Asean through a tougher, more fractured year, aiming to deepen integration despite regional flashpoints. Pakistan Digital Economy: Pakistan’s virtual assets regulator says the country is ready for future technology and a digital economy, citing a fast-built regulatory framework. Asia Currencies: The Philippine peso hit a record low, flagged as Asia’s worst performer amid energy costs and a widening trade deficit. Tech & Travel: Adelaide Airport will deploy Amadeus self-service and cloud tech to cut queues, while United expands its Europe-Asia network from 2027. Health & Science: HUTCHMED reported positive SANOVO trial results for ORPATHYS plus TAGRISSO in EGFR-mutant, MET-overexpressing lung cancer in China. Sports Tourism: Papua New Guinea’s rugby league star Jarome Luai fronts a push to grow sports tourism.

Central Asia Diplomacy: PM Modi kicked off a two-nation trip to Uzbekistan and Kyrgyzstan, aiming to deepen strategic, economic and security ties ahead of the SCO summit in Bishkek. Uranium & Trade: In Tashkent, India and Uzbekistan agreed to a framework for long-term uranium supply and set a $5 billion bilateral trade target by 2030. West Asia Tensions: Iran’s supreme leader Mojtaba Khamenei urged Muslim rulers to unite against the “real enemy,” accusing the US and Israel of exploiting divisions. SCO Spotlight: Xi Jinping arrived in Kyrgyzstan for the SCO summit’s 25th anniversary, underscoring the bloc’s push for broader regional cooperation. Asia-Pacific Growth Watch: APEC expects 3.2% growth in 2026, with technology trade and digital services supporting momentum despite energy and geopolitical risks. Renewables in Focus: Kenya is urged to turn its renewable power edge into industrial capacity, exports and jobs as renewables near parity with coal globally. Disaster Update: Nepal warned rescue efforts could be disrupted as floodwaters rise after a glacial collapse on the Nepal–China border.

Central Asia Diplomacy: PM Narendra Modi begins a four-day Central Asia push, landing in Tashkent for talks with Uzbekistan President Shavkat Mirziyoyev and pledging deeper cooperation across trade, digital connectivity, defence, energy and tourism ahead of the SCO summit in Bishkek. Singapore Demographics: Singapore overhauls its baby bonus scheme as births and fertility hit record lows, rolling out expanded childcare leave, stronger parent support and more subsidised housing to boost family formation. West Asia Security & Diplomacy: US embassies in parts of West Asia start allowing diplomats’ families to return after six months of the Iran war, while the region continues to manage security risks. Tech & AI Leadership: OpenAI appoints former Meta executive Sandhya Devanathan to lead Southeast Asia and Australia operations, signalling a push to expand in the Asia-Pacific. Climate & Sustainability: Philippines’ Mactan-Cebu International Airport wins Level 2 Airport Carbon Accreditation, citing verified emissions tracking and energy-efficiency steps. Sports: Gilas Pilipinas take on Iran in World Cup Asian Qualifiers after a narrow win over Jordan, with standings still tight.

West Asia Inflation Watch: Malaysia’s economy ministry says it’s tracking inflation risks from the West Asia crisis to protect supply of strategic goods like oil through year-end. India–Central Asia Diplomacy: PM Modi begins a four-day Uzbekistan and Kyrgyzstan trip ahead of the SCO summit, aiming to deepen trade, investment, digital connectivity, defence and energy ties. SCO Countdown in Bishkek: Kyrgyzstan is gearing up for the 26th SCO summit with Modi among key leaders, as Central Asia’s role in India’s wider Eurasia outreach comes under renewed focus. OpenAI APAC Leadership: OpenAI appoints ex-Meta VP Sandhya Devanathan as Vice President for Southeast Asia and Australia, based in Singapore, to drive consumer growth, enterprise adoption and regulatory engagement. Tech & Tokenisation in APAC: Tether names Jed Nazif to expand its Hadron real-world asset tokenisation platform across APAC. Energy Shock on the Ground: Delhi CNG prices jump Rs 3.89/kg to Rs 86.98 amid renewed West Asia tensions and LNG disruptions via the Strait of Hormuz. AI Governance in the Region: Hong Kong shifts from AI planning to execution, targeting embodied AI, health tech and public-sector AI rollout.

AI Safety & Cybercrime: Philippines’ DICT-led delegation met Meta in Singapore, securing commitments to remove harmful AI deepfakes and share subscriber data/traffic info with authorities when threats to children are identified. US-Canada Trade Fallout: Alberta’s current and former premiers traded barbs over Trump’s “Lake America” move amid counter-tariffs, as Canada’s economy posted its fastest growth in over three years before tariff hits. Pakistan-Indonesia Trade: Korangi Association of Trade and Industry (KATI) will join Trade Expo Indonesia 2026 in Jakarta, seeking stronger Pakistan-Indonesia preferential trade and re-export links. Tech & Industry: PIA Automation’s H1 revenue rose 19.13% YoY, with embodied AI topping 5% of sales; China’s robotics push is moving from factory trials to wider real-world deployment. Energy Costs: India’s IGL raised Delhi CNG by ₹3.89/kg from 6am Saturday, blaming higher imported LNG costs tied to West Asia tensions. Regional Connectivity: Kyrgyzstan backed India-Central Asia corridors including Chabahar and INSTC to cut transit time and costs. Shipping & Climate: Forum coverage highlights Arctic shipping’s faster routes but major environmental and geopolitical risks.

OpenAI Expansion: OpenAI has hired Meta’s India-and-Southeast Asia VP Sandhya Devanathan to lead Southeast Asia and Australia, underscoring a push into fast-growing markets where ChatGPT use is rising. Big Tech Leadership Shuffle: Devanathan’s move follows Meta’s growing scrutiny in India, while OpenAI continues building its APAC leadership bench in Singapore. Defence Tech: XTEND delivered lightweight M6F tactical ISR systems to an Asia-Pacific defence customer via its Singapore unit, aiming to give frontline troops portable real-time aerial reconnaissance. Regional Security Diplomacy: Iran says it has changed the West Asia power balance and that “hit-and-run” pressure is over, while diplomacy could resume if the US drops coercion. Trade & Supply Chains: Singapore’s trade minister says the city will not tolerate tariff-evasion via “shadow transhipment” and will enforce rules of origin more strictly. Markets Watch: India’s Sensex and Nifty snapped a two-day slide as IT, pharma and metals led gains, with investors still wary of West Asia risks. Logistics: Knight Frank flags strong H1 2026 logistics rental growth in Mumbai, Delhi-NCR and Bengaluru, driven by modern warehousing demand. Energy Routes: China and Russia pledged to boost the Arctic shipping route’s competitiveness as traditional chokepoints face disruption.

SCO Summit Watch: India’s PM Modi is set to attend the Shanghai Cooperation Organisation’s 25th summit in Bishkek as geopolitical turbulence and the Russia-Ukraine and Iran-West Asia conflicts keep regional cooperation under strain. China-US Tensions: Chinese FM Wang Yi urged Washington and Beijing to “overcome obstacles” ahead of a Trump-Xi summit, even as both sides keep taking targeted economic actions. Tech & AI Showcase: China’s humanoid robots again hit a 100-metre record at the World Humanoid Robot Games, but crashes after the finish underscored the gap between demos and real-world work. Markets & Deals: Singapore-listed Frencken plans a S$100m share placement; Seatrium is in talks with Petrobras on offshore natural gas solutions. Data Centres Boom: A new report flags Asia-Pacific data centre growth on AI and cloud demand, projecting a jump to USD 188.33b by 2035. Regional Politics: India is weighing a possible visit by Bangladesh PM Tarique Rahman, while Kazakhstan’s ambassador urged parliaments to turn agreements into action. Travel & Business: Thai Airways will add more Bangkok-Zurich flights for winter demand; Klook and Mastercard signed an MoU to boost payments and travel perks across APAC.

Disaster Response: Nepal’s Bhotekoshi flood entered from Tibet as a major surge, then raced downstream through the Bhotekoshi and Trishuli rivers before reaching the Narayani, with authorities issuing early warnings after river monitoring data went dark in Syabrubesi. Cross-Border Risk Management: Nepal’s political parties want a joint Nepal-China scientific and technical mechanism for glacial lake risk, plus real-time data sharing and a stronger early warning system. Policy & Security: TRM Labs appointed Ziqing Ang as Head of Policy for APAC to help regulators and law enforcement tackle AI- and crypto-enabled financial crime as scams surge. Big Tech Accountability: A Philippines watchdog urged Asean to push a shared “Big Tech Accountability Framework” so platforms can be held to account for harmful content and scams. Food Security Diplomacy: China says it will work with APEC economies to build more resilient, science-based food systems, backed by data and technology. Markets & Tech: Futures rose on Nvidia’s blockbuster 2028 guidance, while Asia’s AI and data-centre buildout continues to drive demand for cooling and security analytics.

Big Tech Accountability in ASEAN: Philippines’ Scam Watch Pilipinas urged the ASEAN chair to push an “Asean Big Tech Accountability Framework” to make social media platforms tackle scams and harmful content together, instead of each country acting alone. Property Stress in the Philippines: Philippine banks cut real estate exposure to the lowest share in over seven years as higher borrowing costs and uncertainty weigh on demand, though lending to residential and commercial property still rose in peso terms. US-China AI Race: Washington debates how to respond to China’s open-weight AI push, after DeepSeek released V4 Pro, reigniting arguments over safety and whether bans should cover open models. Bangladesh Jobs Push: A Khulna job fair handed out instant appointment letters to 285 youths after interviews with 20 recruiting firms. Vatican-Russia Diplomacy: Vatican’s top diplomat met Russia’s Lavrov in Moscow as propaganda spreads conspiracy claims, underscoring the Holy See’s push for peace talks. Asia-Pacific Business & Travel: United Airlines announced its biggest international expansion yet for 2027, while Qantas unveiled lie-flat business suites for 2028 routes including Perth. Health & Climate Tech: New Zealand plans to use environmental DNA to detect invasive yellow-legged hornets in Auckland waterways. Energy & Security: China is building a new military base on a disputed South China Sea reef, adding runways, barracks and a harbor.

Philippines Data Centres & AI Demand: Equinix says the Philippines’ real challenge isn’t a lack of sites, but capacity to handle fast-growing AI data flows responsibly, as it runs Manila and Makati facilities (MN1–MN3). Human Rights & Waste Policy: A UN business-and-human-rights working group visit to Manila’s Smokey Mountain raised concerns from residents about displacement, livelihoods and meaningful consultation tied to a proposed waste-to-energy facility. Digital Transformation in Central Luzon: DOST-III and Singapore’s WPH Digital signed an MOU to speed up regional AI adoption, pairing capability-building with practical deployments. Singapore Data Centres: Digital Realty won a provisional 50MW allocation for an AI-ready Jurong Island campus under Singapore’s DC-CFA2, with over half powered via green energy pathways. India–Japan Startup Push: Piyush Goyal and Japan counterparts backed deeper startup and deep-tech cooperation, proposing a capital corridor, innovation bridge and joint pitching platforms. West Asia Energy Shock: China condemned US “Operation Economic Outcast” sanctions on Iran and partners, warning of retaliation as the Strait of Hormuz risk keeps reshaping energy and trade costs across Asia.

Philippines Aviation: The House approved on second reading a 50-year renewal of Philippine Airlines’ franchise, extending its flag-carrier authority until 2076, backing long-term fleet and route investment. Frontier AI Access: Australia is urged to treat “sovereignty” as managed dependence, arguing it lacks a credible path to build frontier AI itself and must secure capability parity and reliable US inference access. Asia Finance Outlook: Deloitte forecasts Asia-Pacific finance could generate up to $4.8 trillion by 2035, overtaking the US as wealth rises. Healthspan Push: IHH Healthcare CEO Prem Kumar Nair says Asia’s longer, wealthier lives are driving lifestyle diseases and is rolling out clinical preventive “Healthspan” in Singapore. Startups to Watch: Forbes Asia’s 100 to Watch list for 2026 puts India on top with 19 companies, led by AI-powered enterprise, robotics and green tech. West Asia Shock to Trade: US “economic D-Day” sanctions on Iran threaten to squeeze China’s Iranian crude imports, with Beijing warning of retaliation. Food Security at APEC: China’s vice premier calls for APEC economies to strengthen food security via agricultural science, tech innovation and smoother trade flows. ASEAN Youth Anxiety: Asean is being tested by a generation questioning the old upward-mobility bargain, with school violence incidents prompting wider concern. PAL Franchise: Philippines Aviation: The House approved on second reading a 50-year renewal of Philippine Airlines’ franchise, extending its flag-carrier authority until 2076, backing long-term fleet and route investment.

West Asia Sanctions: China says it will keep cooperating with Iran despite the US “economic D-Day” sanctions push, warning unilateral measures breach international law and noting most of Iran’s oil exports go to China. Markets & Growth Outlook: Moody’s Analytics expects Asia-Pacific growth to ease to 4.2% in 2026 and 3.6% in 2027 as inflation and tighter policy bite, even as AI keeps exports supported. Digital Infrastructure Race: Malaysia is positioning data centres and cloud as a strategy, with RM144.4b approved for investments since 2021, aiming to turn compute build-out into local productivity gains. Media & Consumer Impact: Worldpanel finds FMCG brands do best with a balanced TV-plus-digital mix, with TV still the main reach driver. US-Iran Sanctions Details: Reuters outlines new US Treasury actions targeting Iran-linked entities and expanding secondary sanctions threats. AI Compute Demand: Bloomberg reports India’s AM Intelligence ordered 9,000 Nvidia Vera Rubin systems to ramp AI capacity in southern India. Sports: Sri Lanka’s Dewmi Vihanga ruled out of the Women’s T20 Asia Cup; Nimasha Meepage named replacement.