AGP Executive Report

India–Japan Clean Energy & Security: PM Modi and Japan’s Sanae Takaichi used the 16th annual summit in New Delhi to expand clean energy cooperation (biogas, green hydrogen, clean ammonia, solar) alongside defence, economic security and resilient supply chains. AI in Finance Infrastructure: The Philippine Stock Exchange added an AI-focused independent director as it pushes an AI transition for its IT-heavy trading platforms. Semiconductor Push for AI: Micron broke ground on a $9.3B western Japan memory-chip plant to supply high-bandwidth memory for AI, with output targeted for 2028. Energy Transition Debate: Critics attacked Canada’s nuclear energy strategy as a costly “cash cow” that could crowd out renewables and weaken oversight. Space Tech for Telescope Rescue: NASA launched the Swift Boost Mission using a LINK satellite to tow the aging Swift Observatory away from re-entry risk. Maritime Safety Tech: Researchers unveiled an airborne imaging approach using hyperspectral sensing plus AI to detect shallow-water underwater weapons. India Monsoon Watch: India’s monsoon is running about 30% below normal rainfall, raising stakes for water and agriculture. Healthcare Logistics: GEODIS won IATA CEIV Pharma certification for its Hyderabad facility to handle temperature-sensitive pharma shipments.

Markets & Chips: Asian stocks mostly rose as tech rebounded and investors digested softer US jobs data, while the yen steadied after a 40-year low. AI Power Politics: Trump called AI “bigger than the internet” and warned the US must boost electricity for AI buildouts. Central Asia Digital Push: Kazakhstan is betting on AI and digitalization, including a “Data Center Valley,” while Solana-linked partners back Alatau City’s $6B smart-city and crypto payments plan. Undersea Connectivity: NEC will supply the ~3,600-km I-2SEA submarine cable linking India, Malaysia and Singapore, targeting service in 2029 to feed AI and cloud demand. Space Tech Rescue: NASA launched a space robot mission to capture the sinking Swift telescope using a three-armed Link spacecraft. Green Industry: Vietnam is accelerating offshore wind as a driver for its green marine economy, aiming to build an industrial supply chain beyond power generation. Pacific Resilience: Tonga received a $114k parametric drought insurance payout for the Niuas, and ADB proposed a regional TA to strengthen public finance and procurement systems across Asia-Pacific.

India–Japan Summit: Modi and Japan’s Takaichi unveiled a 16-point roadmap spanning AI, defence, economic security, semiconductors, clean energy and mobility, with joint statements on AI and energy resilience plus economic-security plans. AI Policy: India’s MeitY signalled it may start work on a dedicated AI legal framework as regulators move beyond existing rules for deepfakes and content labelling. AI Infrastructure & Markets: A rebound in Asian tech followed softer US jobs data, lifting Korea’s Kospi and chip names; meanwhile, investors kept piling into AI hardware suppliers tied to memory and components. Healthcare Tech: Malaysia’s IJN completed Southeast Asia’s first transradial renal denervation using the Iberis system, aiming to improve comfort and reduce access complications. Space Tech: A rescue mission launched to boost NASA’s Swift Observatory orbit after solar storms threatened its safe return. ASEAN Science: Malaysia said MOSTI will prioritise talent development for AMMSTI-23, alongside AI, digitalisation and advanced materials. Automotive Tech Forecasts: New reports project rapid growth in night vision, robotics, automotive semiconductors and EV motor controllers, with Asia-Pacific leading several categories. AI for Work: ADP warned of a “confidence gap” as AI unbundles jobs into tasks, pushing skills and trust needs. Philippines STEM: The Philippines won medals at the inaugural Asia-Pacific Olympiad in Artificial Intelligence (APOAI 2026).

AI Infrastructure & Research: ASEAN opened a Korea-backed high performance computing facility in Jakarta to boost AI and data research across Southeast Asia. AI Adoption & Skills: Thailand launched the Thailand AI Readiness Index (TARI) to help organisations assess AI capability and plan upgrades, with findings due in December. Energy & Resilience Engineering: DNV updated seismic design guidance for wind power plants as Asia-Pacific projects expand into earthquake-prone regions. Digital Economy & Trade: Microsoft is investing $2.5B in a new “Frontier Company” to embed AI engineers with customers, while a Microsoft-led consortium moves ahead on an India–Southeast Asia undersea cable. Semiconductors & Economic Security: India and Japan unveiled a joint economic security roadmap spanning semiconductors, critical minerals, ICT, clean energy and pharmaceuticals. Markets & Chips: Asia tech stocks slid on chip sell-off fears as AI-linked trading cooled, while US markets stayed mixed amid renewed tech weakness. Space Tech: NASA postponed a satellite rescue mission after weather and launch-vehicle snags. Climate & Cooling Tech: China’s viral “outdoor air conditioner” is actually mist cooling that relies on rapid evaporation to pull heat from the air.

Undersea Connectivity: A Microsoft-led consortium plans a 3,600-kilometer India–Malaysia–Singapore subsea cable (I-2SEA), aiming to boost AI and cloud data links across Southeast Asia. Bilateral Tech Push: India and Japan set a target of 10 trillion yen in Japanese investment over the next decade and unveiled a roadmap spanning semiconductors, quantum, clean energy, and resilient supply chains, alongside deeper defence cooperation. Semiconductor Race: A Korea-focused analysis warns China’s HBM push is narrowing the gap, even as SK hynix and Samsung push HBM4/4E. Market Shock: South Korea’s Kospi slid nearly 8% as chip giants fell amid AI-fueled valuation worries and reports of Apple chip talks with Chinese firms. AI in Infrastructure: UAE firm Presight AI signed a Kazakhstan smart-road deal, tying AI to traffic and city digital platforms. Crypto Governance: South Korea tightened KOSDAQ rules to stop tech-listed firms from covertly pivoting into crypto treasury businesses. Renewables & Industry: China Resources New Energy’s IPO tripled on debut, while Covestro outlined new MDI capacity plans in China and a UAE feasibility study.

Indo-Pacific Defense Drills: U.S. Marines trained with Japan’s Type 16 maneuver combat vehicles during Resolute Dragon 26, underscoring joint plans to control and defend key maritime terrain. Missile Industrial Policy: Germany is seeking U.S. approval to license-produce Tomahawk cruise missiles and Patriot PAC-3 interceptors, aiming to reduce reliance on strained U.S. production lines. Climate & Risk Forecasting: New Zealand declared El Niño conditions, with an 80% chance of strong intensity in July–September 2026; expect drier conditions in the north/east and wetter weather in the west/south of the South Island. AI & Robotics Shift: A new “physical AI” wave is driving record robotics investment, as labor shortages and better real-world sensing/learning push automation beyond software. Digital Governance: Canada tabled the Safe Social Media Act to make platforms and AI chatbots safer by design for kids under 16. Tech Sector Watch: Lawsuit pressure is mounting on Samsung and SK Hynix to “speak up,” while markets remain sensitive to tech swings. Startup/Regional Tech Push: Türkiye is positioning itself as an entrepreneurship hub, including plans to host GITEX AI in September. Space Heritage: NASA’s Skylab story highlights how early space stations adapted fast after a launch failure.

Defence Tech & Sovereignty: Malaysia says it wants stronger domestic defence technology, signing a cooperation deal between Weststar Defence Industries and Australia’s Rocket Technologies to build aerospace capability and cut reliance on foreign assets. Aviation & Digitalisation: Kazakhstan’s President Tokayev met Air Astana’s CEO as the airline plans fleet expansion (including Boeing 787s) and route growth, with digitalisation a key theme. DeepTech Funding: Ruya Ventures closed a €43m fund to help lab-born deep-tech cross into scalable, real-world deployment. Disaster Recovery: The ADB approved $200m emergency assistance for Sri Lanka after Cyclone Ditwah, targeting resilient rebuilding of roads, irrigation, housing and livelihoods. AI in the Real World: An AI underwater monitoring system on Lake Victoria triggered SMS alerts that helped fish farmers prevent mass die-offs. Cloud & Local Latency: AWS launched its Hanoi Local Zone, aiming to keep latency-sensitive workloads in Vietnam for fraud detection, gaming and smart factory alerts. Data Centres Under Scrutiny: A fresh debate continues over data centres’ environmental and social impacts across the region. Aviation Carbon Offsets: A UN-backed airline carbon scheme could drive major demand for high-integrity credits in Southeast Asia if governments authorise more projects. Quantum/Space: ICEYE and AgniKul Cosmos plan an end-to-end sovereign SAR capability using Indian-built satellites and indigenous launches. Manufacturing for AI Racks: Vertiv opened a Johor plant to make power and cooling gear for rising AI data centre demand.

AI Infrastructure Push: South Korea plans massive investment—about $1.2tn-equivalent—into a new chip-building hub and AI data centres, with Samsung and SK Hynix leading record-scale memory capacity to feed the AI boom. Cyber & Security: A Gulf cybersecurity executive warns AI will make attacks more automated, targeted and persistent, with visibility and talent shortages becoming the next big gaps. Digital Payments Expansion: India’s UPI goes live in Greece via Eurobank, enabling instant, low-cost transfers and extending India’s digital finance footprint. Data Centres for AI: Digital Realty will buy Blackstone’s interests in three Northern Virginia hyperscale data centres (288 MW) to deepen exposure to the AI infrastructure market. Energy & Climate Accountability: The World Bank reports gas flaring rose for a third straight year in 2025, wasting $54bn worth of gas and adding major emissions. Scam Tech Scrutiny: AP reports American tech is embedded across scam supply chains, from AI tools for fakes to infrastructure enabling operations—raising questions about enforcement incentives. Regional Trade: Mercosur starts talks with Japan to diversify toward Asia, but internal EU quota allocation disputes remain unresolved.

Satellite & Space: Es’hailSat signed a strategic partnership with Türksat and a contract with Thales Alenia Space for Es’hail-3/Türksat-Biruni, a Ka-band high-throughput satellite at 50°E aimed at faster, dynamically allocated connectivity across MENA, Sub-Saharan Africa, Europe and Central Asia. AI & Telecom: Tech Mahindra and Microsoft are teaming up on an AI-driven 5G network digital twin using Azure to modernize operations and help operators monetize 5G. AI Models & Export Controls: Chinese cybersecurity firm 360 unveiled an AI tool it claims rivals Anthropic’s Mythos, while Japan’s Sakana AI launched Fugu, as US restrictions reshape Asia’s AI race. Philippines IT-BPM: Twilio says AI could lift Cebu’s IT-BPM beyond customer support into higher-value AI-enabled services, with modernization of contact centers as the next step. Maritime Tech: Veritas Petroleum Services opened a marine fuel testing lab in Shanghai for bunker fuels including methanol, targeting faster turnaround and compliance support across Asia-Pacific. Blockchain in Central Asia: Solana Company signed an MoU with Alatau City to build a digital asset and fintech blockchain hub in Kazakhstan. Security Hardware: Hytera debuted its SC700 smart 4G body camera at CCW 2026, pushing connected, real-time workflows for public safety. Geopolitics & Water: Pakistan warned it will “chop off the hand” interfering with its Indus Water Treaty water supply, escalating legal and diplomatic tensions with India.

Regional Security: The Asia Pacific Foundation of Canada launched CSCAP’s Regional Security Outlook 2026, warning that U.S.-China rivalry is reshaping Indo-Pacific security, with tech competition, politicized supply chains, and climate risks driving a tougher navigation challenge for regional states. Wealth & Tech Boom: Southeast Asia’s ultrarich population is set to surge, with tech growth and natural resources cited as key tailwinds. Semiconductors & AI Industrial Policy: South Korea unveiled an $880bn semiconductor-and-AI investment push, aiming to build new memory chip capacity—another signal that AI demand is still pulling the region’s chip race forward. AI in Education: Sri Lanka launched its first national AI policy framework for higher education, aiming to modernize curricula and embed ethical AI standards across universities. Clean Energy in Central Asia: Masdar broke ground on a 1 GW wind plus 600 MWh battery project in Kazakhstan, positioning 24/7 renewable power for future data-centre and AI infrastructure. Space Tech Rescue: NASA is paying Katalyst Space Technologies to capture and lift the Swift gamma-ray telescope as atmospheric drag threatens re-entry, with science already paused. Health Tech Research: Lung-on-a-chip work shows asthma attacks can permanently remodel airways via mechanical stress, pointing to new angles for treatment. Maritime Decarbonization: ClassNK and NMRI launched joint research on corrosion-rate evaluation for low-temperature, low-pressure liquefied CO₂ cargo tanks to support safer CCUS shipping.

Semiconductor Push: Samsung and SK Hynix plan a combined $518B chipmaking hub in South Korea’s southwest to meet AI-driven demand, reshaping regional manufacturing. AI Hardware Rivalry: Nvidia’s AI chip sales in China face headwinds as Huawei and other local players gain ground amid US export controls. Antitrust Clash: Apple escalated its fight with India’s Competition Commission, accusing investigators of “copy-pasting” rivals’ claims in an iOS App Store case. Energy Storage Deal: Pace Digitek’s Lineage Power signed a master supply agreement for 3 GWh of LFP battery cells from China’s Rongjie Energy, aiming to strengthen BESS production and logistics. Battery Supply Chain: CXMT reportedly locked in a long-term DRAM supply deal with Tencent ahead of its IPO, underscoring China’s push to secure server-memory demand. Maritime Tensions: Chinese coast guard ships escorted a research vessel near areas overlapping Japan and Philippines EEZs, as Manila-Washington drills continued near Scarborough Shoal. Regional Markets: MUFG flagged the Philippine peso’s weakness as tied to a structural current account deficit and reliance on external financing. Cooling Demand: With Europe in a heatwave, Chinese-made air conditioners are surging, adding fuel to China-EU trade friction debates. Life Sciences M&A: Merck agreed to acquire Bio-Techne to expand end-to-end life sciences workflows from research to manufacturing. Medical Procurement Watch: China’s bulk drug procurement crackdown continues, with regulators disqualifying firms over serious quality and production-control defects.

ASEAN Minerals & Critical Supply Chains: Malaysia is pushing the ASEAN Mineral Investment Forum (AMIF) 2026 in Kuala Lumpur to boost cooperation on critical minerals, sustainable mining and downstream value-add across the region. Bangladesh-China Tech & Capital: Twelve Chinese firms have proposed about $9.21b in Bangladesh spanning waste-to-energy, ports, energy and education, with deals framed around renewed investor confidence and policy predictability. SME Digital Push: Bangladesh’s SME Foundation says small firms must adopt digital tech and AI fast, backed by training and inclusive support so rural entrepreneurs aren’t left behind. India–Seychelles Tech, Defence & Digital Payments: Modi’s visit expands cooperation with a Rs 1,250 crore rupee credit line, rice/cement aid, defence maritime support and UPI-based payments, plus space and healthcare plans. China’s Supercomputing Win: China’s LineShine tops the TOP500 list with 2.198 EFLOPS, a major milestone despite US curbs. Robotics in the Spotlight: A New York pop-up shop showcases general-purpose humanoid robots from Chinese makers, highlighting Asia’s momentum in robotics. Health Tech Regulation: A US bill would add cybersecurity checks to already-approved Chinese-made medical devices. Climate & Food Security: India braces for weaker monsoon risks as El Niño looms, threatening farm output and water stress.

S. Korea–Japan Defence: Seoul and Tokyo reaffirmed denuclearisation of the Korean Peninsula and agreed to deepen defence cooperation, including AI-focused advanced science, plus expanded maritime search-and-rescue drills. India–Seychelles Tech & Security: PM Modi and Seychelles President Patrick Herminie unveiled 19 outcomes spanning defence and maritime security, UPI-based digital payments, outer-space cooperation, healthcare and agriculture, alongside new patrol and coast-guard support. India Monsoon Risk: El Niño-linked stalled monsoon has pushed rainfall to a 45% deficit versus normal, raising stakes for kharif crops and water stress. India Payments Push: NPCI CEO Dilip Asbe says AI will help UPI reach a billion daily transactions via fraud detection, credit distribution and improved multilingual voice onboarding. China Fusion & Industry: China’s CRAFT “artificial sun” superconducting magnet cleared final tests, while industrial profit growth slowed as weak domestic demand persists despite AI-driven export support. ASEAN Higher Ed: ASEAN ministers backed three initiatives to boost digital transformation in higher education, teacher development and cross-border research collaboration through 2030. Google Wallet: Google Wallet is testing Gmail-receipt-based package tracking that surfaces delivery updates inside the app. China EV Shift: China’s NEVs hit 56.9% of new car sales in May, with the next battleground moving toward AI-driven in-car software experiences.

Disaster & Safety: A 5.6 quake hit central Japan near Mt Fuji, with Shinkansen briefly suspended and no nuclear abnormalities reported. Regional Space Tech: China and Central Asian countries signed on to a joint satellite constellation for disaster monitoring, pairing space data with AI processing in Xinjiang. Clean Transport: India’s first hydrogen-powered train completed a 120 km/h speed trial in Haryana, moving closer to passenger service. Frontier Tech Push: India’s Jitendra Singh says AI, quantum, nuclear and space will shape the next growth and security era, while South Korea and India back global AI and semiconductor supply-chain cooperation at the Pax Silica Summit. Semiconductor Industrial Policy: Thailand floated an ASEAN CHIPS Act to build a more unified regional chip ecosystem. Health & Environment: New mapping suggests Pacific toothed whales and dolphins carry some of the highest PFAS (“forever chemicals”) levels, pointing to rising contamination over two decades. AI Cost Pressure: UBS reports firms are shifting workloads to cheaper Chinese AI models as price gaps widen. Energy Infrastructure: Malaysia’s SEDA will retrofit its HQ into its first Zero Energy Office Building with Japan’s NEDO support. Tech Supply Chain Politics: Apple is reportedly seeking US clearance to buy memory from blacklisted Chinese supplier CXMT amid DRAM price stress.

Transport Infrastructure: China’s first private-capital high-speed rail line in Zhejiang has cleared 100 million passenger trips, cutting Hangzhou–Taizhou travel to 74 minutes and boosting local talent flows. Gaming & Culture Tech: Chinese-developed video games are widening globally, with overseas revenue topping $20.45B in 2025 as studios scale up international distribution and tech. Public Health & Regulation: China is stepping up safeguards against misuse of addictive “emerging substances” like nitrous oxide, as police data show traditional drug cases falling while misuse shifts to newer products. Semiconductors & US-China Policy: Apple is lobbying the Trump administration to buy memory chips from blacklisted CXMT, highlighting how AI-driven chip costs collide with US national-security restrictions. Healthcare Robotics: Vietnam’s Vinmec launched the country’s first nationwide integrated robotic surgery network, linking multiple hospitals through a multi-connected ecosystem. Defense Tech: Airbus and Kawasaki are studying a Japan-focused anti-submarine warfare variant of the U950 Eurodrone to extend long-endurance maritime surveillance. AI for Agriculture: India’s Chandigarh University says it built an AI transformer model to predict crop yields from satellite and climate data, aiming to help farmers plan under uncertain weather. Regional Space Cooperation: China and Central Asia plan a shared satellite constellation (“Tianwu”) for disaster monitoring and agricultural pest detection.

Open-Weight AI & Cybersecurity: A new Chinese open-weight AI model (GLM-5.2) is drawing alarm after reports it can be downloaded and modified, raising fears that safety controls could be stripped for misuse. Markets Mood: Tech stocks keep sliding globally as investors question AI valuations, with chip and AI-linked names dragging indexes and volatility gauges jumping. ASEAN STI Push: Malaysia urged ASEAN to build a more integrated, mission-driven science and innovation ecosystem, tying research to real-world impact and preparing to host key regional STI meetings. Japan AI in Finance: Japanese banks and tech firms are teaming up to build an AI chat tool for retail asset management, aiming to personalize advice via conversation. Japan–US Defense Tech: The US permanently basing Global Hawk drones in Japan boosts long-endurance surveillance across Indo-Pacific flashpoints. India Education Shift: India’s higher education is rapidly moving online with AI-supported teaching, assessment, and learning—alongside new debates on originality and integrity. China–Bangladesh Water Talks: Bangladesh’s China visit spotlights renewed cooperation on Teesta river restoration and river management. South China Sea Discovery: China says it found a rare coral blue hole near Huangyan Island, using environmental DNA to detect thousands of marine species.