AGP Executive Report

Luxury Hospitality Expansion: Diafa, backed by recent acquisitions including H.wood Group, is pushing to scale luxury dining globally, with more U.S. growth in its sights. 3PL Branding: Bnode rolled out “Paxon,” a unified third-party logistics brand spanning Europe, Asia and North America, combining fulfilment and point-of-sale logistics. Health & Consumer Supplements: Kirin says it’s starting to reap benefits from its Blackmores acquisition as it expands health products across Asia. APAC Corporate Reshuffle: Enerflex completed its Asia Pacific divestiture to INNIO, narrowing focus to core regions while keeping engineered systems sales in APAC. AIIB Priorities: India’s Sitharaman urged AIIB to broaden financing toward AI, MSMEs and skilling as the bank targets scaling operations. Philippines Tourism Push: PAGCOR chief Tengco called for expanding MICE facilities to boost Philippine tourism beyond traditional leisure. Singapore Innovation: Singapore held 5th globally in the Global Innovation Index, topping 12 indicators worldwide. Markets & Rates: Global stocks leaned lower as high bond yields kept pressure on risk appetite, with Asia mixed. Biotech Publication: Qurient published in Science Advances on how its CDK7 inhibitor boosts TOP1i-ADC performance. Shipping Risk Watch: Hapag-Lloyd plans limited Red Sea/Suez sailings again, but Bab el-Mandeb security concerns remain a key drag for regional corridors.

ASEAN Digital Safety: Philippines President Ferdinand Marcos urged ASEAN to tackle gender-based violence online and push regional digital frameworks to keep the internet a space for opportunity, not oppression. AI & Business Expansion: Korea’s KOSA and MegazoneCloud showcased Korean AI/Software at Tech Week Singapore, aiming to help SMEs sell across Singapore and the wider ASEAN market. Medical Tourism: Malaysia’s Penang drew about 285,400 medical tourists in 1H 2026, generating RM601.8m, reinforcing its lead role in the country’s healthcare travel industry. Fraud Watch: Interpol warned that romance scams and crypto-linked investment fraud tied to Southeast Asian syndicates are now a national security concern, with global losses estimated at $442bn in 2025. Finance & Regulation: Korea’s anti-corruption agency met foreign chambers to hear operational hurdles; Shinhan Bank Vietnam faced central bank scrutiny over loan-screening and monitoring gaps. Energy & Trade Corridors: Pakistan’s Ahsan Iqbal pushed AI-led digital border processes and customs harmonisation across CAREC to speed cargo along practical trade corridors. Shipping & Logistics: KKR backed India’s Cisternina to build a pan-India liquid storage and logistics platform, while PSACC added a new 398-TEU cargo vessel for key Philippine interisland routes.

AI & Sanctions: The US Treasury sanctioned 10 individuals and entities under “Operation Economic Outcast,” targeting Iran-linked networks that procure weapons and dual-use components, including a Hong Kong firm and an alleged Iran defense ministry representative in Beijing. South China Sea Diplomacy: Taiwan plans a second trade office in the Philippines (Cebu) as Manila and Taipei deepen ties amid Chinese pressure, alongside a donated patrol vessel for the Philippines coast guard. Markets & Energy: Asian stocks mostly slipped as hopes for a Strait of Hormuz reopening faded; oil rose and Treasury yields pressured sentiment. Infrastructure Push: China opened multiple record high-speed rail sections across Hebei, Henan, Shaanxi, Hubei and Heilongjiang, boosting connectivity and tourism. Regional Development Finance: Azerbaijan will host AIIB’s 12th Annual Meeting in Baku in July 2027, with officials highlighting transport/logistics and green infrastructure priorities. ASEAN Women & Policy: Philippines President Marcos urged ASEAN to give women greater decision-making roles, linking it to regional security and economic resilience. Business & Trade Facilitation: The Philippines launched Negosyo Center Online Portal 2.0 to digitize services, mentoring and business support for SMEs.

ASEAN Gender Push: Philippines President Marcos urged Asean to give women greater decision-making roles at the 4th Asean Women Leaders’ Summit, calling it a leadership gap that affects security and prosperity. AIIB Connectivity Drive: In Doha, AIIB governors’ meeting highlighted Gulf integration potential, with Qatar’s finance minister backing more AIIB projects for connectivity and climate financing. Pakistan IMF Talks: Pakistan and the IMF formally began reviews under the EFF and climate resilience programme, with possible $1.2bn financing on completion. China-ASEAN Growth Shift: FutureChina Forum speakers said Chinese firms are eyeing Southeast Asia for higher-value growth, AI and advanced manufacturing, while managing property and jobs to support consumption. APEC CEO Summit: US firms are actively signing up for APEC’s Shenzhen summit in November, with major names already applying. Digital Infrastructure & Cloud: Sri Lanka Telecom’s SLT-Mobitel launched an enterprise premium cloud with Nutanix, while Olilo rolled out ASN and IPv6 PI sponsorship services to lower barriers for network operators. Markets & Energy: Asian stocks mostly fell as hopes for reopening the Strait of Hormuz faded and rate-hike expectations rose; oil extended gains. Trade & Mobility: India will use Routes Asia 2027 in Delhi to unlock new air connectivity with 55 countries, 115 airlines and 2,500 meetings.

AIIB in Doha: Qatar’s finance minister Ali bin Ahmed Al Kuwari chaired AIIB’s Governors’ Business Roundtable, pushing for more private capital and faster delivery of sustainable infrastructure as the bank targets doubling annual lending to $20bn by 2030. Connectivity deal: AIIB signed a EUR158.42m (about $182m) financing pact with Georgia for climate-resilient road links in Kakheti, strengthening the Trans-Caspian Transport Corridor. Energy shock ripple: QatarEnergy extended LNG force majeure, delaying cargoes to Edison and some Asian buyers (including Bangladesh and Pakistan), as Hormuz closure keeps supply tight ahead of winter. Trade route upgrade: Iran completed the Chabahar–Zahedan rail gap, boosting India’s access to Central Asia and reducing reliance on Hormuz. Regional markets watch: ASX set for a cautious open on RBA decision day; investors also weigh Fed-tightening pressure on Asia. Payments in Vietnam: Cross-border QR links are expanding for tourists, with more banks and apps enabling familiar payments via VietQRGlobal.

ASEAN Connectivity Push: Malaysia’s foreign minister Mohamad Hasan urged deeper ASEAN connectivity and even “free movement of people” over 10–12 years, arguing the region must prepare its workforce for tougher intra-ASEAN competition. UNGA, West Asia Shockwaves: Hasan warned that Strait of Hormuz closures and West Asia conflict are hitting Southeast Asia through higher fuel and goods prices, underlining how geopolitics is now a global business cost. AIIB Finance Talks: Qatar hosted AIIB’s annual meeting as Malaysia’s finance minister met AIIB President Zou Jiayi, pressing for more investment in Nepal’s post-flood rebuilding and greater concessional financing. Energy, Markets, and FX: Oil climbed as Trump rejected Iran’s Hormuz reopening plan, lifting Brent toward $108 and adding inflation pressure; Asian stocks were mixed as investors weighed crude and higher yields. Trade and Logistics: Asean firms are watching China’s Pinglu river-to-sea canal for faster access to inland hubs, while also fearing a surge of Chinese imports; separately, container spot rates show a widening US premium over Europe. Malaysia Investment Link-Up: MIDA and OCBC Malaysia signed an MoU to attract sustainable, high-value ASEAN, China, South Korea and Taiwan investment and support local SMEs. Bangladesh Digital Investment Drive: VEON and Banglalink launched “Invest in Bangladesh NOW!” with an investor symposium in New York, anchored by VEON’s $250m and targeting $1bn in digital-economy FDI.

AIIB Infrastructure Push: Doha will host the 11th Asian Infrastructure Investment Bank annual meeting on Monday under “Tomorrow’s Infrastructure: Impact and Innovation,” with Qatar’s finance minister Ali bin Ahmed Al Kuwari chairing governors and discussions spanning climate funding, public digital infrastructure, gender-responsive financing, cross-border connectivity and resilience. Gulf-Asia Business Links: In Doha, Qatar’s Qatari Businessmen Association met Hong Kong’s financial secretary Paul Chan to deepen investment and trade ties, targeting financial services, healthcare, logistics, technology and asset management. Asia Wealth Tech: DBS and Avaloq expanded their long-running partnership to build next-generation wealth management capabilities for Asia, aiming to meet rising demand for advice amid talent shortages. Trade Talks in Focus: South Korea and ASEAN begin a second round of FTA upgrade negotiations in Singapore (Sept 28–Oct 1), aiming to raise standards on critical minerals, supply chains, digital trade, IP and rules of origin. Energy & Climate Risk: Nepal’s hydropower boom faces a new reality after August floods from a glacial collapse knocked out about 10% of capacity and exposed climate and geological vulnerabilities. Ports Go “Blue”: IFC will lend $70m to India’s JN Port for shore power supply infrastructure to cut emissions and air pollution while creating jobs. Tourism Momentum: The WEF says travel and tourism conditions improved across most economies since 2024, with Japan leading the 2026 index and Sri Lanka among the fastest improvers. Fraud Warning: Interpol flags online financial and romance scams as a growing threat to Asian economies, urging faster dismantling of syndicates.

Trade & Investment Diplomacy: UAE Trade Minister Dr Thani Al Zeyoudi wrapped UNGA week in New York with ministerial talks and investor roundtables aimed at boosting trade, investment, digital innovation and development finance. Cross-Border Finance: Qatar Financial Centre and the U.S. Chamber of Commerce signed an MoU to deepen commercial and investment links, targeting wealth management, fintech, digital assets and enterprise tech. AI Infrastructure Race: South Korea’s Rebellions opened a Singapore unit to accelerate Southeast Asia expansion, joining rivals in the push to secure AI chip and data-centre footholds. Shipping & Logistics Pressure: Korea’s growth outlook is supported by semiconductor exports, but weak domestic demand and higher oil prices are flagged as risks; separately, port container traffic weakness persists in the U.S. Sanctions & Energy Shock: The U.S. escalated pressure on Iran’s aviation and banking access, while oil-price volatility and refining constraints keep fuel-cost concerns in focus across the region. Bangladesh Macro & Housing: Bangladesh faces elevated inflation risks tied to structural issues; ADB approved a $100m loan to expand affordable, resilient housing finance for low-income families, with a strong women-focused target. Fraud Threat: Interpol warned that online financial and romance scams run by organised syndicates are increasingly damaging Asian economies. ASEAN Resilience: Indonesia reiterated ASEAN’s “unity and centrality” as the region navigates global competition. Infrastructure Pipeline: AIIB’s second-decade push in Doha centers on turning infrastructure plans into bankable projects that can attract private capital.

UN Multilateralism: Malaysia’s foreign minister says middle powers and ASEAN must keep dialogue alive at the UNGA as major powers stall, arguing regions should speak for themselves. China–US Trade & AI: China says it agreed with the US on a $30bn reciprocal tariff-reduction plan and will launch an AI dialogue, alongside a trade council and extending earlier Kuala Lumpur outcomes. Infrastructure Finance (AIIB): Nepal’s Finance Minister Swarnim Wagle heads to Doha for the AIIB annual meeting, aiming to mobilize investment for infrastructure, climate adaptation and renewables, with bilateral talks lined up. Pakistan Water Project: The World Bank proposes a $540m rural WASH project for Sindh to serve 1.5m people, with co-financing from ADB. Banking Regulation Debate: Bangladesh bankers and businesses urge broader consultation before Bangladesh Bank issues a special exit facility for classified loans, warning against rushed implementation. Trade & Tourism Signals: Bangladesh ranks last in WEF’s Travel & Tourism Development Index, while India pushes a digital tourism push using AI to expand jobs and activity. Regional Connectivity Race: Analysis warns Armenia’s TRIPP corridor faces “economic time” pressure as parallel Trans-Caspian routes attract financing and speed.

Philippines Macro: The IMF cut its 2026 growth forecast to 3.4% from 3.9%, citing weaker Q2 performance (2.3%) plus oil-driven inflation and sluggish government spending, while projecting a rebound to 5.1% in 2027. Indonesia Environment: Indonesia’s forest fires are worsening haze across Southeast Asia, with international help described as piecemeal and a major funding gap for tropical forest protection highlighted. China-US Diplomacy: Xi Jinping wrapped up his Washington visit, promising two more Trump meetings before year-end, but analysts noted few concrete trade or AI breakthroughs. South Asia Policy: Nepal’s new foreign-policy doctrine frames engagement as “three directions, one strategy” — India, China and the wider world — to expand trade and connectivity while preserving development autonomy. India-GCC Ties: India and the GCC reviewed their Joint Action Plan in New York, focusing on West Asia issues and shipping challenges, with trade at $178.66bn in FY25-26. Azerbaijan Connectivity: Azerbaijan pitched itself as a Europe-Asia transport and logistics hub, citing a 90% freight jump on the Middle Corridor since 2022 and plans to expand gas and renewables exports. Digital Safety: Indonesia urged Meta to accelerate deactivation of under-16 accounts under child-protection rules, demanding a clear timeline and reporting.

UNGA Trade Corridors: Pakistan PM Shehbaz Sharif urged Hormuz and Bab al-Mandeb to stay open as “arteries of the global economy,” condemning Houthi attacks and warning water disputes could be an “act of war.” India Macro Watch: The RBI said India’s financial and external sectors remain resilient, but West Asia-driven oil shocks and rising yields are key downside risks. Bangladesh Inflation: A report links persistent high inflation to structural weaknesses—weak competition, bottlenecks, concentration, and delayed policy adjustment—forecasting inflation near 9% in coming years. Azerbaijan & ECO: Jeyhun Bayramov highlighted ECO Clean Energy Centre launch, tourism plans, and Middle Corridor/“Digital Silk Way” integration at an ECO meeting on UNGA sidelines. Central Asia Investment Push: Kyrgyzstan’s investment agency called for a single “market for investment” to coordinate capital attraction across Turkic states. BSE Investor Alert: India’s BSE warned against buying international ETFs at big premiums to NAV, citing limited unit supply and risk of sharp corrections. AI & Business: Sri Lanka launched AI Week 2026 to boost skills and industry links, while Singapore’s HR Excellence Awards crowned Micron for AI-enabled workplace transformation.

ASEAN–China SME Push: ASEAN-China Centre is rolling out training across ASEAN to help SMEs sell into China, focusing on FTAs, customs rules and cross-border e-commerce. Malaysia–Thailand Value Chains: Malaysia’s economy minister urged both countries to go beyond export volumes by building higher-value halal and rubber collaboration for ASEAN and global markets. Vietnam Insurer Credit Boost: AM Best affirmed BIDV Insurance’s ratings, citing strong risk-adjusted capital and stable performance. Cybersecurity Deal: KELA’s Japanese unit signed a collaboration with Fujitsu to deploy KELA Group cyber threat intelligence and managed security services in Japan. Azerbaijan Corridors Strategy: Azerbaijan’s economy minister said transport corridors should move goods, energy, data, capital and people—aiming to triple trade flows along the Middle Corridor by 2030. DBS–Avaloq Wealth Tech: DBS and Avaloq expanded their 18-year partnership to scale adviser capacity and co-innovation for wealth growth. Tourism & MICE: WEF says tourism conditions improved across most economies, while Vietnam’s Phu Quoc is positioning itself as a premium MICE destination with large seaside shows. Regional Pay Trends: Aon forecasts Southeast Asia salary increases averaging 5.2% in 2027, with Vietnam leading and Singapore staying lowest at 4.1%.

Canada–Vietnam Connectivity: Canada and Vietnam signed an expanded air transport deal for the first time, enabling direct flights and more cargo capacity to boost trade and people-to-people links. Malaysia–China Digital Trade: Malaysia’s PM Anwar Ibrahim said Malaysia is positioning as a digital trade bridge, launching a Malaysia pavilion at the Global Digital Trade Expo and highlighting tech ecosystem strengths. ASEAN MSMEs: The Philippines’ DTI outlined the next push for ASEAN micro, small and medium enterprises, stressing trade fairs, IP support, and regional networks. RCEP Expansion: RCEP ministers approved an ad hoc accession working group to advance Bangladesh’s bid, keeping the bloc open and inclusive as it deepens Asia-Pacific supply-chain ties. US–China Summit Watch: Trump and Xi opened talks in Washington amid disputes over Taiwan, rare earths, chips and Iran, while markets tracked the broader leverage game. Markets: U.S. stocks slid again as Treasury yields jumped, keeping rate worries front and center. ADB/World Bank Development: The World Bank and ADB reviewed Amaravati projects, focusing on transport upgrades and flood management progress. Business Deal: TPG exited FirstCry via a ₹202 crore bulk deal, as the kidswear firm faces profitability pressure.

Malaysia Growth Outlook: Two economists say Malaysia could grow 5.7% in 2026, beating WEF/ADB/official forecasts, led by manufacturing, construction and investment tied to AI chip packaging in Penang and data centres in the Johor-Singapore corridor. AI Supply Chain Theme: Moody’s Analytics expects Malaysia (plus Taiwan, Singapore, India, Vietnam and Indonesia) to outpace China in 2026 as semiconductor demand lifts exports, even as APAC growth moderates. Green Power & Ports: Tenaga Nasional urges grid upgrades to handle more renewables and cross-border power flows across ASEAN. Separately, Malaysia’s ports push “greener port” upgrades—productivity, emissions cuts, digitalisation and cross-border cooperation—to stay competitive. Trade Deals: Malaysia-Bangladesh FTA talks begin end-October in Dhaka, aiming for completion in 2027. Digital Economy Tax: Sri Lanka’s Inland Revenue Department moves to an 18% VAT on non-resident digital services, adding e-invoicing and reverse charge rules. UPI Payments: India’s NPCI says the new UPI merchant MDR won’t dent volumes and will be reinvested into the payments ecosystem. Energy Transition Finance: Thailand says it needs about US$210bn by 2035 to decarbonise, with stronger water governance and climate-finance monitoring. Connectivity & Middle Corridor: Kazakhstan and China back expanding the Trans-Caspian “Middle Corridor” with safer, faster procedures and more capacity. Azerbaijan Outreach: Azerbaijan promotes tourism across Jakarta, Kuala Lumpur and Singapore, pitching cultural and Umrah-linked travel and business partnerships. Semiconductors Investment: Kaynes Semicon plans a ~$50m automotive reliability and failure analysis lab in Asia, targeting December operations and later space-grade chips.

Qatar Financial Center–Asia Links: QFC signed MoUs in Beijing and Hong Kong to deepen financial and trade cooperation, with a focus on green energy, AI and digital infrastructure. ADB Growth Upgrades: The ADB lifted Vietnam’s 2026 growth forecast to 7.8% and Uzbekistan’s to 7.0%, citing stronger demand and investment, while warning El Niño and conflicts could still bite. IMF Warns Sri Lanka: The IMF said Sri Lanka’s recovery could be derailed by El Niño and Middle East war fallout, urging red tape cuts and tax incentive reforms. Markets & Rates Shock: Wall Street slid as a jump in U.S. bond yields stoked inflation worries; oil’s slide also stalled. Aviation & MRO: Honeywell expects more Asia-Pacific demand for extending aircraft service lives, signing a three-year Garuda Indonesia MRO deal. Transport & Power Projects: ADB approved $200m for Dhaka power distribution upgrades, and Kazakhstan advanced an AIIB framework deal targeting about $6bn for infrastructure and green finance. Trade Corridor Push: Trump backed the India–Middle East–Europe Economic Corridor, aiming to reroute energy and goods away from Iranian chokepoints. Business Expansion: STARLUX and American Airlines launched a codeshare to boost U.S.–Asia connectivity.

AI & Data Infrastructure: Digital Realty’s 2026 survey finds APAC firms are ramping AI spend, with 59% expecting AI budgets to rise 25%+ in 2026 and many already seeing measurable outcomes. Korea Growth Boost: The OECD lifted South Korea’s 2026 growth forecast to 3.7% on strong exports, while the ADB also raised its outlook to 3.2% amid AI-chip demand. El Niño & Energy Risks: The ADB warns developing Asia-Pacific faces slower growth and higher volatility as El Niño persists into early 2027, pushing up food and energy pressures. ASEAN Trade & Diplomacy: ASEAN and Russia back a 2026-2035 trade and investment cooperation programme spanning digital, energy, transport and more. Malaysia Healthcare Tech Push: Malaysia’s Health Summit Asia 2027 aims to bring healthcare tech solutions to rural and suburban needs, targeting more integrated, cost-saving devices. EV/Industrial Expansion: Ultraviolette secured $85m funding and eyes US entry in 2027; GASCA expects ~30% nacelle MRO growth over five years. Finance & Payments: Cargills Bank (Sri Lanka) expands with Intellect’s composable eMACH.ai core banking, while Klook and Visa team up across six Southeast Asian markets for creator-led travel experiences. Energy Security: South Korea plans to cut Middle East crude reliance to 50% by 2035 as it diversifies supplies.