AGP Executive Report

AI and Markets: Asian shares fell as investors questioned whether soaring AI spending can deliver returns, while South Korea’s SK Hyper seeks partners for a data-centre plan targeting 15 GW of capacity by 2035; its first 5 GW phase is estimated to cost US$350 billion. AI Infrastructure: Red Hat has opened an APAC AI Centre of Excellence in Singapore to help businesses move projects into production, with engineering work and skills development. Clean Energy: A 330-MWp solar plant in central Vietnam is expected to generate 520 million kWh a year and avoid about 400,000 tonnes of carbon emissions. Electric Mobility: BYD and Malaysia’s Gentari are partnering on fast-charging infrastructure as the country pursues 30,000 public chargers by 2030. Hyundai has also supplied 11 electric buses for Bali’s first public transport pilot. Climate Risk: The ADB warns coastal flooding could cause up to US$739 billion in annual losses across Asia and the Pacific by 2100 without stronger adaptation.

Data Infrastructure: Synology reported strong double-digit sales growth in Malaysia, led by demand from government and healthcare organisations. The storage provider urged businesses to test backups against ransomware, insider threats and accidental deletion. Cybersecurity: Millions of attacks followed disclosure of critical flaws in PHP, prompting urgent patching worldwide; public services from Tokyo to Helsinki were taken offline as a precaution. Digital Competition: Taiwan blocked Grab’s US$600 million Foodpanda deal, citing its financial and board ties to Uber and the risk of weaker competition in food delivery. Regional Trade: China’s high-tech trade with other APEC economies rose 50.3% year-on-year to 6.66 trillion yuan in the first nine months of 2026, as electronics, automotive and machinery links deepened. Climate Technology: Malaysia plans to push science-led ASEAN haze prevention and monitoring when it chairs the regional committee next year, and is studying new tools to tackle fires in dry peatlands.

Digital Infrastructure: South Korea plans to use its proposed sovereign wealth fund to finance digital infrastructure and attract private and international investment. Local Tech: Malaysia is fixing disruptions to its TuJu highway app after a surge in users, as it works to improve capacity and reliability. Regional Connectivity: A US-backed $400 million undersea cable linking Malaysia, Vietnam, Singapore and Thailand is expected to begin service in 2028; developers are choosing between Japan’s NEC and France’s Alcatel as supplier. AI Data Centres: ZTE unveiled a modular data-centre system in Singapore for high-density AI computing, with rack power reaching up to 250 kilowatts.

AI Investment: Goldman Sachs estimates Indian AI-company IPOs could add $50 billion to $100 billion to listed market value over the next two to five years. Regional Infrastructure: APEC finance ministers adopted a policy statement on digital infrastructure financing, alongside measures to deepen financial cooperation. Pacific Climate Science: A study of 28 atoll islands finds seabird nutrients and native forests can help reefs keep pace with rising seas under warming of up to 2°C; restoring native ecosystems could strengthen resilience. Data Centres: CBRE plans to buy infrastructure specialist Onnec for up to $1 billion, adding network and fibre deployment capabilities across Asia-Pacific and Europe. AI Services: OpenAI is expanding ChatGPT advertising to Pakistan and 25 other countries, bringing ads to 89 markets. Skills: China’s Luban Workshops now deliver vocational training in 32 countries, including hands-on electric-vehicle engineering for Egyptian students.

AI & Telecom: China Telecom Global and HKUST have launched a joint lab to advance AI research for telecommunications. Electric Mobility: BYD is bringing its flash-charging technology to Indonesia, alongside the launch of Denza’s D9 and Z9GT. Regional Tech Ties: Singapore and Sweden signed a pact spanning AI, cybersecurity, quantum technology and 6G. Jobs & AI: IMF data points to a nearly 10% drop in hiring for AI-exposed roles across Asia, highlighting the growing need to prepare workers for shifting demand.

Online Safety: Malaysia urged ASEAN to coordinate child-protection measures despite differing national rules. At a Manila meeting, officials also called for faster cross-border action against online fraud, money laundering and trafficking enabled by digital technology and AI. India–US Technology: Rubio said a trade deal was close and pressed India to expand energy and defence purchases, while both sides highlighted cooperation on emerging technologies. Central Asia: Rubio’s Samarkand visit produced a reported $12 billion in agreements spanning digital technology, infrastructure and critical minerals. AI and Chips: Asian tech shares slid amid concerns over AI spending and earnings; China condemned Washington’s ban on DeepSeek in federal agencies, deepening tech tensions. Clean-Tech Cooperation: Singapore and Sweden agreed to expand work on clean energy and emerging technologies, including AI, cybersecurity, quantum computing and 6G.

Regional Finance: Hong Kong welcomed plans for an Asian Infrastructure Investment Bank office that will support project financing and strengthen the city’s role in regional financial cooperation. Robotics: China’s Neolix raised nearly US$400 million to scale its autonomous delivery vehicles and expand overseas, while Chinese and German firms explored joint work in robotics, industrial AI and smart manufacturing. Food Security: Perennial rice developed with Chinese researchers has produced its first harvest in Malaysia’s Sarawak, offering a potential boost to a state that currently grows only about one-fifth of its rice needs. AI Safety: INTERPOL launched a campaign on deepfake-enabled scams, warning that realistic fake voices and videos are increasingly being used to target ordinary people. Data Infrastructure: Former Australian industry minister Ed Husic warned that data centres are expanding too quickly, with questions still unresolved over whether proposed energy and water standards will cover facilities already under construction.

Central Asia’s Tech Push: The US and Uzbekistan signed more than 50 contracts worth a reported $12 billion as Secretary of State Marco Rubio courted regional partners; Google Pay also launched in Uzbekistan, extending contactless and online payments. India’s Naval Innovation: The Navy is testing whether local research and startups can turn prototypes into reliable equipment, as it seeks to build more of the technology and industrial capacity needed at sea. AI Skills and Safety: Indonesia is training 100 developers in Batam to build secure AI applications, while a Nairobi forum brought faith leaders and technology experts together to examine AI risks to children. Smarter, Cleaner Transport: A Malaysia expo opening Tuesday will showcase digital identity and biometrics for air travel, alongside cleaner fuels and ways to cut transport emissions. Digital Farming: In China’s Hubei province, AI monitoring and QR-code tracking are being used across vegetable production, linking farm data with supply-chain traceability. Investment Links: Philippine President Ferdinand Marcos Jr. returned from Singapore with expanded cooperation and investment plans spanning logistics, energy and technology.

AI and Digital Policy: A three-day Global AI & Digital Summit opened in Seoul, bringing officials from about 60 countries together to discuss practical uses of AI and digital technology for development. China’s Economy: GDP grew 4.5% in the third quarter, powered by exports, while fixed-asset investment fell 7.2% and real-estate investment dropped 20.6%. AI Infrastructure: South Korean battery makers are expanding into backup power for AI data centres; Samsung SDI plans to begin producing LFP batteries for AI servers in Malaysia next year. Pacific Climate: Forecasters agree a very strong El Niño is developing, but differ on whether it could be record-breaking, partly because agencies use different measures. Southeast Asian Haze: Indonesian fires have pushed regional haze alerts to their highest level, with demand for oxygen tanks and air purifiers rising.

Southeast Asia Haze: Indonesian wildfires are driving up demand for oxygen tanks and air purifiers, closing schools and worsening respiratory risks. Conservation teams have also rescued dozens of endangered orangutans. Green Shipping: China completed the first commercial ship-to-ship bunkering of green ammonia, loading 1,000 tonnes onto an ammonia-fuelled carrier bound for Australia. Pacific Surveillance: New Zealand’s uncrewed vessels have flagged 150 suspicious boats in two years and recently monitored traffic around Fiji, as regional partners expand maritime drug enforcement. AI and Chips: AI and electric vehicles are reshaping Asia-Pacific semiconductor supply chains, creating demand for faster, more reliable cross-border shipping. Digital Agriculture: In the Philippines, farmers see online marketplaces as the digital tool with the greatest potential, but costs, infrastructure gaps and limited support remain obstacles.

AI and Jobs: An IMF review of 40 million job postings across 19 Asian economies found demand for roles most exposed to AI has fallen nearly 10% since ChatGPT launched, while demand for new AI skills is rising. India, Indonesia and the Philippines face the challenge of creating enough productive work as the technology reshapes hiring. Chip Race: China’s CXMT plans to launch server memory using a denser 4F² design by year-end, rattling global chip stocks. The advance could pack more memory into less space, but Korean rivals retain manufacturing advantages. AI Investment: Rising borrowing costs and doubts about returns are weighing on Asia’s AI hardware suppliers, putting the spending boom that has powered chip and component demand under scrutiny. Digital Access: A report warns 1.2 billion people in developing Asia-Pacific remain offline, highlighting a major barrier to sharing in the region’s digital growth. Cancer Research: A Hong Kong-led study links H. pylori exposure to an estimated 22% of colorectal cancer cases worldwide, raising the possibility that a common stomach infection is a broader cancer risk than previously understood.

Flood Forecasting: A solar-powered sensor network on Sri Lanka’s Gal Oya River combines live rainfall and water-level data with two AI models to flag next-day flood risk, offering an early warning where monitoring has often relied on manual reports. Biodiversity: Researchers identified a giant sweat bee in Vietnam’s Tam Đảo mountains using genome sequencing; the 20-millimetre species is known from a single male specimen. Cave Science: An eyeless freshwater snail found in a Yunnan cave is the first cavesnail of its kind formally recorded in China, extending the known elevation range for Asian cave-dwelling freshwater snails. Drone Safety: Japan is taking a phased, risk-based approach to managing drone flights, with digital systems needed as registrations and permit applications grow. Pacific Monitoring: University of Hawaiʻi at Hilo students track bay conditions every 15 minutes, helping researchers assess changes linked to storms and agricultural runoff. Silk Road Research: Chinese and Uzbek archaeologists are using 3D modelling and modern material analysis to study an ancient burial site in Uzbekistan.

Malaysia-China Technology: A five-day visit by Malaysia’s deputy prime minister secured commitments to expand cooperation in AI, semiconductors, electric vehicles and the digital economy. A new institute will support skills training in robotics and smart manufacturing. AI Infrastructure: Southeast Asia’s data-center boom is raising concerns over power and water use. Malaysia has 1,318 megawatts of operational capacity and 5,438 megawatts in development, the largest pipeline among the three markets highlighted. Transplant Research: A Beijing study validated a blood test that measures donor DNA to help detect heart-transplant rejection in Asian patients, offering a potential alternative to invasive biopsies. Vietnam’s Talent Push: The government aims to attract 1,000 top specialists by 2030 and is setting aside 0.1% of GDP annually for talent development.

Pharma Research: Swiss testing group Cotecna acquired Hyderabad’s Energon Labs, expanding its pharmaceutical testing network and capabilities in India. AI & Digital Trade: Alibaba.com and Malaysia’s MATRADE are working to help local SMEs, especially halal businesses, use AI and digital platforms to reach international buyers. Enterprise AI: India’s RapidCanvas raised $29 million in a Series B led by Vertex Ventures Southeast Asia & India to expand its teams and bring more AI applications into production. Materials Science: Arkema expanded its Shanghai research centre, adding about 20% more laboratory space for materials development and customer collaboration. Food Security: Chinese hybrid-rice technology is helping Philippine crops withstand heavy rains; local technicians trained in breeding and cultivation are supporting more stable harvests. Defence Technology: Hanwha says its laser weapons downed three drones in a South Korean Army demonstration, as the company courts overseas buyers. Space Industry: Indian space startups are attracting overseas customers and investors, with launch provider Skyroot reporting foreign enquiries and satellite-imaging firm Pixxel raising $100 million.

AI Market Shakeout: Asian stocks rebounded after a tech-led rout raised questions about debt financing the AI boom, but doubts over data-centre spending continue to unsettle chip markets. Robotics: China’s RoboParty launched its open-source humanoid RP1 in Southeast Asia, targeting universities and researchers working on robotics and embodied AI. Smart Farming: Chinese AI tools are shortening crop-breeding cycles by more than 30%; pest-monitoring systems in Zhejiang have cut pesticide use by 20%. Manufacturing: At the Canton Fair, 64% of exhibitors are applying AI, industrial internet or other advanced technologies, with robots and intelligent manufacturing among the growing showcases. Power Grids: Hanwha Solutions verified materials for 500kV cables with Chinese manufacturers, a step toward supplying higher-voltage transmission projects. Pacific Conservation: A new framework, shaped by input from more than 250 people across the region, offers guidance on moving endangered species beyond their historic ranges to reduce extinction risk.

Public-Sector AI: Malaysia’s Commerce Dot Com said a three-month AI pilot in its government procurement system cut call-centre workload by 15–18%; the company shared lessons at an ADB-backed conference in Bhutan. ASEAN Agtech: Indonesia proposed regional plans to expand digital and AI use in agricultural cooperatives, alongside climate resilience measures. Pacific Security Tech: Australia will provide Fiji with renewable-powered Bluebottle maritime drones for surveillance and drug-crime enforcement; they can stay at sea for more than 180 days, with delivery expected in early 2027. Digital Infrastructure: Kazakhstan and Azerbaijan launched a Trans-Caspian fiber-optic link designed to strengthen connectivity between Central Asia, China and Europe and support cloud and AI services. Clean Energy: A 54-panel solar system donated to a Yangon school is expected to provide more reliable power for more than 1,800 students.