AGP Executive Report

Subsea Connectivity for AI: NEC has signed to supply the 3,600-km India–Southeast Asia (I-2SEA) cable linking India, Malaysia and Singapore, aiming to start operations in 2029 and boost AI/data-centre links. Regional Digital Infrastructure: MoraRepublic and HMN Tech completed factory acceptance testing for the Moratelindo International Cable System-3 (MIC-3), designed to connect Singapore and Batam and expand toward Jakarta. AI Talent in the Philippines: The Philippines won medals at the inaugural Asia-Pacific Olympiad in Artificial Intelligence (APOAI 2026), taking one gold, one silver and two bronze. Energy and Shipping Skills: The Swedish Club warns Asia’s LNG and alternative-fuel ship upgrades must be matched by stronger crew training to keep safety gains. Markets and Trade: Indian shares logged weekly gains as softer US jobs data and easing oil reduced rate-hike fears; India also exported 40 tonnes of Varanasi biscuits to Oman under the India–Oman CEPA. Food Prices: FAO says global food prices fell for a second straight month in June, led by drops in sugar, cereals and dairy.

Philippines AI Education Win: Eight Filipino students won medals at the inaugural Asia-Pacific Olympiad in Artificial Intelligence (APOAI 2026), scoring one gold, one silver and two bronze on a six-hour test against 18 countries. South Asia Arts & Inclusion: Bradford’s The Leap launched “Stage Ready: South Asia” to train 10 South Asian musicians for live performance, with coaching in stagecraft, branding and technical skills. India-Japan Energy Push: Japan’s PM Sanae Takaichi and Narendra Modi announced deals worth over JPY 2tn, including a joint 400,000-tonne green ammonia project aimed at energy security. AI, Markets and Caution: Asian shares were choppy as US jobs data cooled Fed hike expectations, while analysts warned India’s IT sector may start weak in 1QFY27 amid West Asia disruption and chip/GenAI-driven pricing pressure. Business Moves: NIQ completed its Flywheel acquisition for China and SE Asia eCommerce data; Amazon Leo added 29 satellites to its constellation. Regional Policy: Singapore will open selected sectors to Timor-Leste workers next year; WHO discussed strengthening the South-East Asia emergency health fund. Tech Governance: Thailand outlined a “hybrid” AI governance model, aiming to finish its first AI law this fiscal year.

India-Japan Power Play: PM Modi and Japan’s Sanae Takaichi used their summit to lock in semiconductor, defence and energy-resilience cooperation, including strategic stockpiling plans. West Asia Energy Shock: India’s fuel retailers are still absorbing losses from the West Asia crisis, even as crude prices ease; separately, Air India Express fully restored its West Asia network to Oman and Kuwait. South Asia Diplomacy: A joint India-Pakistan open letter urges renewed dialogue on Jammu & Kashmir, while analysts warn domestic politics may keep it “orphaned.” Arctic Shipping Race: South Korea, Japan and Singapore are pushing Arctic logistics, but the key route remains seasonal and politically tricky. AI in Business: Cyberport is drawing mainland Chinese AI firms as a global springboard, while Southeast Asia’s AI infrastructure pivot lifts Polibeli shares. Trade & Travel: Nepal hit a record June for Indian arrivals by air; MSC Cruises unveiled a Pan-Asian street-food dining concept for MSC World Asia. Industry Deal: IHC and Adani signed an MoU with Odisha for an $11.5bn green aluminium project.

Philippines-Canada Diplomacy: President Ferdinand Marcos Jr. departs for Vancouver to meet PM Mark Carney and business leaders, aiming to shape a Plan of Action on trade, investment, and future-ready cooperation through ASEAN-Canada channels. ASEAN Supply-Chain Debate: With China-ASEAN trade topping $1 trillion in 2025, investors are debating whether ASEAN is a true manufacturing hub or mainly a tariff-bypass conduit. Workplace Culture: A survey finds toxic workplaces still hit 68.9% of workers, with leadership trust and communication the biggest drivers, and nearly half saying they quit because of it. Singapore Tech & M&A: Singapore firms dominate Southeast Asia’s $19.7b tech M&A wave, led by KKR and Singtel’s $6b data-centre deal. Climate & Health: Cambodia joins WHO efforts on air pollution and heat, as the region braces for worsening haze and El Nino-linked food-price pressure. AI Security & Governance: Experts warn that AI safety rules and access limits could widen inequality, while Singapore pushes its next AI strategy phase. Energy & Industry: VEICHI expands C&I solar-plus-storage and ASEAN gas strategy discussions stress cross-border resilience. Business & Finance: NPS wins seven global investment awards; SAP appoints Verena Siow as APAC president; and Singapore police charge firms in a Nvidia server rerouting probe.

Tourism Policy: South Korea extended group visa fee waivers for China and five other markets through Dec 31, 2026, aiming to keep Chinese arrivals and broader people-to-people travel on track. Aviation & Connectivity: Kazakhstan’s FlyArystan launched an Almaty–Xi’an route, adding to China–Central Asia “Air Silk Road” links as demand for cross-regional flights rises. Urban Mobility: Manila’s “Common Station” cleared for four rail lines, promising faster transfers and less congestion around key corridors. Sports & Para Games Pipeline: Indonesia’s para-athletes topped the 2026 World Para Athletics Grand Prix in Tunisia, with the focus now on securing qualification slots for the Aichi-Nagoya Asian Para Games. Finance & Dealmaking: Freedom Holding’s Turkish Bank acquisition won BRSA approval, moving the group closer to building an integrated financial platform in Türkiye. Tech & Business Expansion: Ant International opened a Global Development Centre in Kuala Lumpur to scale AI, fintech and digital payments, while KPS launched an Asia platform. Energy & Trade Risk: IATA said global passenger demand fell 2.2% in May as Middle East conflict disrupted travel, with load factors holding up.

Markets Watch: Asian stocks traded mixed as investors braced for key US jobs data, with the yen hovering near multi-decade lows and worries that AI-fueled tech valuations may be stretched. Regional Security & Crime: Cambodia is pushing a trilateral Laos-Vietnam liaison mechanism to speed up information sharing and coordination against online scams and other transnational crime. Energy & Prices: India’s private fuel retailer Nayara cut petrol by Rs 5 and diesel by Rs 3, but most pump prices may not change because state-run companies kept rates steady. Aviation & Trade: IATA said global air cargo demand rose 6% in May, though Middle East carriers still faced war-related disruption. Business Deals: Kotak Mahindra Bank agreed to buy Deutsche Bank’s India retail, private banking and wealth business, targeting scale in affluent and SME segments. Health & Society: Singapore launched Taiwan’s plant-based festival to boost premium agri-food branding, while India’s “immune booster” supplement debate reignited evidence-literacy concerns. Wealth Snapshot: UBS ranked Singapore 6th globally for average wealth per adult in 2025.

AI & Sustainability Conference: Malaysia’s AiSED, Asia e University and Gaine Academy will host the AiSED International Conference 2026 (Dec 2–4) in Shah Alam, focusing on “Harnessing AI” to advance sustainable development through entrepreneurship and diplomacy. Education Expansion: Taylor’s Education Group partners with Vietnam’s SenTia School, with British University Vietnam supporting curriculum quality and student mobility across Malaysia, Singapore and Vietnam. Aviation Demand: IATA says May 2026 air passenger demand fell 2.2% y/y, with the Middle East conflict dragging results, though load factors hit record highs for May. Energy & Trade Risk: Shell warns global LNG trade could stay flat in 2026 as Strait of Hormuz disruptions curb West Asian supply, pressuring some Asian importers. Water Diplomacy: Pakistan’s Ishaq Dar warns against sabotaging international river treaties, reaffirming Islamabad won’t accept illegal diversion or blocking of its water share under the Indus Waters Treaty. Cambodia-Thailand Border Row: Cambodia condemns Thailand’s unauthorised visit to the disputed O’Smach border area, calling it a breach of international law and rejecting related media claims. Finance & Markets: Kotak Mahindra Bank agrees to buy Deutsche Bank’s India retail, private banking and wealth business; Bangladesh’s Idcol wins FinanceAsia’s “Best Sustainable Bank” award. Cybersecurity: The Internet Society will hold the NDSS Symposium in Seoul in March 2027, citing Asia-Pacific’s fast-growing research and participation.

Corporate Leadership: Apple’s CEO handover is set: Tim Cook to become executive chairman from 1 Sept, with hardware chief John Ternus taking over—closing the longest modern CEO run. Diplomacy: Cambodia and Quebec pledged deeper cooperation in Paris, with talks also touching regional border dynamics. Cybercrime & Tech Abuse: A major investigation describes how global scammers use US tech and AI-driven tools to scale romance scams across dozens of countries. Energy & Costs: Malaysia cut petrol and diesel prices for 25–30 June after softer global oil prices and improved West Asia conditions. Regional Trade & Ports: Adani Ports agreed to sell a 49% stake in Vizhinjam Port to MSC’s logistics arm TiL for $1.4bn, aiming to boost cargo visibility and ramp-up. Climate & Nature: Activists in London targeted insurers over LNG expansion plans in the Coral Triangle, warning of reef and mangrove damage. Business & Finance: BIS warned AI financing risks in Asia-Pacific, citing compressed risk premia and potential overinvestment. Sports: Brazil’s Marquinhos urged respect for Japan ahead of the World Cup Round of 32.

Trade & Industry Policy: Malaysia’s MITI says subsidy rationalisation can protect MSME margins and competitiveness if done gradually, targeted, and paired with support—pushing automation for MSMEs, EV infrastructure, green energy, and skills for higher-value industries. Air Cargo: IATA reports global air cargo demand rose 6% in May (capacity +1.9%), with Asia-Pacific up 8% in demand, while Middle East carriers saw a 8.9% contraction tied to war-related impacts. AI Governance: A Southeast Asia-wide push is underway to regulate AI, but ASEAN guidance remains non-binding, leaving enforcement uneven across countries. Cybersecurity for SMEs: Kaspersky and Digital Penang team up to boost cybersecurity readiness for Penang’s MSMEs under the state’s digital economy plan. Diplomacy: South Korea and East Timor agree to expand cooperation on climate, infrastructure, education and law enforcement. Regional Politics: Iran warns Bahrain amid West Asia tensions as US-Iran talks continue. Capital Markets: Philippines’ Globe shares jump on Mynt’s planned October IPO filing, while Asia United Bank approves a capital stock increase and dividends. Sports: ICC confirms LA28 cricket qualification pathway for men and women.

Philippines-Canada Ties: President Ferdinand Marcos Jr heads to Canada for a July 1-4 state visit, with talks on defense logistics, energy and critical minerals, and a push to conclude a Canada-ASEAN free trade deal this year. West Asia Ripple in Asia: Malaysia’s parliament will question how the West Asian conflict is affecting foreign tourist arrivals and whether Langkawi security is ready for migrant smuggling and territorial intrusions. Cybercrime Crackdown: New reporting details the scale of abuse in Asia’s cyberscam centres, where trafficked workers run online fraud operations. Human Rights Watch: Kazakhstan’s civil and political freedoms score low in HRMI’s Rights Tracker 2026, citing pressure on journalists and limits on assembly and political participation. Business & Payments: JCB and PNB launch a Philippines JCB Platinum Credit Card with travel and installment features. Sports & Governance: Pakistan weightlifting faces a possible ban from the 2026 Asian Games unless unpaid IWF fines are recovered. Aviation Deal: Korean Air gets conditional approval to merge with Asiana, targeting a Dec 17 integration. Tech & AI Skills: KPMG finds 92% of tech executives see managing AI agents as a key future skill. Markets: Asian stocks were mixed as oil rose amid US-Iran uncertainty.

Malaysia–Vietnam Tourism Push: Malaysia’s tourism minister says both countries will expand cooperation on medical and halal tourism after talks in Macao, aiming to unlock more joint promotion and industry links. Sino–ASEAN Culture & Trade: APEC tourism ministers in Macao spotlight digital innovation and connectivity to deepen Asia-Pacific tourism collaboration. South China Sea Tensions: The Philippines renews criticism of China over refusal to comply with the 2016 arbitral ruling, calling Beijing insincere. West Asia Security: Iran’s IRGC claims missile and drone strikes on US targets in Kuwait and Bahrain; Iraq and Iran’s foreign ministers also discuss bilateral ties and regional security. Northeast Asia Defence: South Korea and Japan reaffirm denuclearisation while strengthening defence cooperation, including renewed search-and-rescue drills. AI + Finance Risk: Central bankers warn BIS that debt-fuelled AI data-centre spending could trigger a global financial crisis. India IT Watch: Analysts flag FY27 guidance cut risk for Indian IT as GenAI deflation and geopolitics cloud demand. Nepal Banking: Nepal’s average commercial bank base rate falls below 5% as credit demand stays subdued. Tech in the Region: Firmus Technologies, backed by Nvidia, plans its first Indonesia data centre; OpenAI appoints Prabhjeet Singh to lead India operations. Governance Tech: India launches an AI-enabled Rural Internal Audit Portal to replace paper-based audits.

Health & Science: India’s Jitendra Singh urged a shift to “precision medicine,” pointing to gene therapy and nuclear medicine as homegrown tools for tailored care. Climate Risk for Industry: Zurich Group warned India’s 267 GW renewable pipeline faces severe hazards—90% of planned sites carry high or critical climate risk by 2030. Crime & Policing: Delhi Police arrested a wanted chain snatcher after a brief shootout in an outer district, recovering a pistol and scooter. Energy & Finance: A report on gold loans says rising demand is tempered by stress-test findings after the RBI raised loan-to-value rules for smaller loans. South China Sea Tensions: Philippines Defense chief Gilberto Teodoro accused China of “insincerity and hypocrisy” after Beijing rejected Manila’s call to comply with the 2016 arbitral ruling. Indo-Pacific Diplomacy: India resumed tourist visas for Bangladeshis, a move aimed at easing a recent rift. Regional Education: ASEAN higher-education ministers backed initiatives on digital transformation, teacher development and research collaboration through 2030. Business & Tech: Singapore-listed A-Sonic Aerospace is scouting Asean acquisitions as it expands into IT. Culture & Society: Indigenous leaders marked the UN Permanent Forum on Indigenous Issues, stressing health and rights in conflict contexts.

APEC Tourism: Macao hosted the 13th APEC Tourism Ministerial Meeting, with ministers pushing digital innovation and closer cross-border cooperation to boost the region’s tourism-driven growth. India-UK Trade: Piyush Goyal urged Indian firms to deepen UK ties under the CETA framework, launching knowledge reports to help businesses turn trade opportunities into long-term growth. West Asia Tensions: Bahrain accused Iran of drone attacks, as Iran and the US traded strikes and both sides blamed each other for violating a recent MoU around the Strait of Hormuz. AI Race: Asian AI firms are moving fast as US export limits bite—360 unveiled a new model, while Japan’s Sakana AI launched “Fugu,” both aiming to compete with top frontier systems. Tech & Work: Ola Electric’s Bhavish Aggarwal said AI agents could cut middle management and shift value toward people building products. Sports & Culture: India won medals at the Asia Cup Bridge Championship, while Malaysia’s baseball federation flagged the East Asia Cup in Manila as a key 2026 stepping stone.

Workplace Wellbeing: Gallup’s State of the Global Workplace 2026 says Filipino workers are the most stressed in Southeast Asia, with 50% reporting stress most of the day, alongside the region’s highest daily sadness and anger—yet they’re also the most “engaged,” showing strain and commitment can coexist. US-Iran-Gulf Diplomacy: Gulf foreign ministers meeting in Bahrain welcomed an interim US-Iran truce but warned any Strait of Hormuz trade or control arrangements are unacceptable, while pushing for progress toward a lasting deal that addresses Iran’s threats and proxy support. South China Sea Posture: A report says the US kept a high-intensity military presence in the South China Sea in 2025, boosting close-in reconnaissance and drills even as other theaters constrained operations. Central Banking Caution: Analysts expect Southeast Asian central banks to stay defensive on currencies as the US dollar and Fed policy remain pressure points, even with easing oil-price risks. India Growth Boost: After the US-Iran peace deal, Goldman Sachs lifted India’s 2026 growth outlook to 6.8% on lower oil-price risks. AI Leadership Move: Uber India’s Prabhjeet Singh steps down after 11 years to become OpenAI’s Managing Director for India, tasked with scaling consumer and enterprise adoption and partnerships. Regional Tourism Push: Macao, hosting an APEC tourism ministerial meeting, signaled deeper Asia-Pacific tourism cooperation with a focus on digital innovation. Football Governance Shock: FIFA suspended Nepal’s ANFA for “flagrant violations,” a major blow for Nepal’s participation in international football.

Central Asia Climate Risk: Kyrgyzstan wrapped a three-day regional dialogue in Bishkek on a roadmap to cut transboundary mudflow and flood risks, with plans for a shared investment approach and a digital catalogue for climate-risk management under RESILAND CA+. Malaysia Financial Inclusion: Bank Negara Malaysia launched the “Semak Kasih” portal so beneficiaries can check unclaimed insurance or takaful coverage linked to family members. Philippines Workplace & Social Values: Gallup data shows Filipino workers report stress “a lot of the day” at 50% in 2025, the highest in Southeast Asia, while a World Values Survey analysis ranks the Philippines among the most accepting in Asia of homosexuality. Cross-border Payments: India and Nepal operationalised person-to-person digital transfers using mobile numbers/UPI IDs, extending India’s payment connectivity push. Business Expansion: Smartworks agreed to buy Singapore’s Workstudio Spaces to expand its managed workspace footprint. China-Russia Sanctions Talk: EU sanctions envoy David O’Sullivan said EU-Russia trade has fallen sharply and the bloc will hold its line. Finance & Markets: Brazil began steps toward issuing yuan “Panda bonds” in China to diversify funding for green and innovation projects.

ASEAN Energy Integration: Sarawak Energy is pushing the ASEAN Power Grid idea forward by exporting power to Kalimantan since 2016 and to Sabah since last December, with talks underway for Brunei links and a longer-term plan for a Sarawak–Singapore subsea cable plus possible interconnection to Peninsular Malaysia. AI + Cloud Investment: Amazon CEO Andy Jassy’s $48 billion India commitment to 2030—plus a $13 billion push for AI data centres and AWS infrastructure—signals India’s value is shifting toward cloud capacity, not just retail. Conservation Gap: A new Asia-wide study maps 122 key shark and ray habitats but finds only 5.4% overlap with marine protected areas, with Sri Lanka’s key sites still mostly unprotected. Startup Ecosystems: Seoul’s NextRise 2026 drew 540+ startups and 4,000+ 1-on-1 meetings with major corporates and investors, spotlighting AI, biotech and defence. Social Values: A Philippines-led survey ranks the country third in acceptance of homosexuality among nine Asian economies. Business + Trade: Malaysia opened ATEX Malaysia 2026 to reinforce its textile and apparel hub role, while Singapore banks pledged cash access within 500 metres of every HDB block by 2027. Climate + Water Stress: India’s delayed, weak monsoon is hitting farms and Mumbai construction and households, with water restrictions and long queues reported.