AGP Executive Report

AirAsia’s Future: Malaysia is weighing support for debt-laden AirAsia, saying a collapse could threaten connectivity and 26,000 jobs. UK Business: Mid-market activity hit its strongest level in nearly two years in September, while smaller firms moved closer to stability. Boeing: The company narrowed its third-quarter loss as commercial aircraft performance improved and its defense business delivered strong results. AI Investment: The AI boom helped drive US business spending on equipment higher in September, as companies continue to pour money into the technology. Egypt Investment: The World Economic Forum will bring nearly 80 business and institutional leaders to Egypt in November to discuss investment, exports and private-sector growth. Small-Business Support: New Jersey closed a five-year efficiency program that committed $179.2 million for upgrades at schools and small businesses, aimed at lowering operating costs.

Banking: HSBC’s third-quarter profit jumped 32% to $9.6 billion, prompting fresh calls for a UK bank tax as the lender announced $2.7 billion in shareholder returns. AI Investment: Singapore launched new support to help companies adopt AI, including a program starting with 24 firms and S$150 million for research and commercialisation. European tech companies raised $61.9 billion in the first nine months, up 63% year on year, though funding rounds fell 19%. Regional Growth: Malaysia’s investment agency urged Borneo to coordinate cross-border value chains; Sabah and Sarawak attracted less than 7% of national approved investment despite covering about 60% of the country’s land. Demand Watch: India’s festive-season paint sales remain subdued, with volumes up just 2% to 4%. In Estonia, business confidence improved in October, while consumer confidence weakened sharply.

M&A: Tata Motors’ bid for Iveco cleared the 80% acceptance threshold, reaching 87.8% and advancing its €3.8 billion deal for the truckmaker’s commercial-vehicle business. Japan’s Umios agreed to buy High Liner Foods at an enterprise value of C$1.25 billion, while Amsons Group acquired Oryx Energies’ Tanzanian fuel business for US$230 million. Infrastructure: Malaysian contractor Pansar won a RM170.86 million water-project subcontract, and Aneka Jaringan secured RM53.35 million in piling work. Workforce: Two Massachusetts biotech firms plan to cut about 150 jobs as they narrow their drug-development focus, reflecting an uneven sector recovery. Small Business: ESO Ventures says women entrepreneurs have received 99 loans totaling more than US$3.9 million from its portfolio.

AI Investment: Elon Musk warned that more than 200 specialist AI cloud firms could fail or consolidate as lenders pull back, sharpening investor concerns over the sector’s spending boom ahead of major tech earnings. India Markets: Jio Platforms’ ₹30,213-crore IPO drew over ₹7 lakh crore in bids and was subscribed 22.2 times; Tesla India reported its first sales-led annual profit, ₹5.16 crore on ₹247 crore in revenue. Energy Transition: Petronet LNG plans a ₹1,200-crore joint venture for 10 biogas plants, diversifying from import-exposed LNG. A Malaysia-backed project to transmit Vietnamese offshore wind power to Singapore could also open work for Malaysian contractors and engineers. Trade & Industry: Malaysia is pushing palm oil producers toward higher-value products for cosmetics, healthcare and industry to reduce reliance on crude palm oil exports. Pahang exporters are also being urged to invest in product development and digitalisation to reach global markets. Power & Climate: Renewables now make up 63.1% of Türkiye’s installed power capacity, while rising climate-related crop losses are driving up agricultural insurance claims and payouts.

Currency & Power Costs: The Philippine peso hit a record low of 63.615 to the U.S. dollar, prompting a lawmaker to urge regulators to reject unjustified electricity surcharges tied to the weaker currency. Palm Oil Trade: Malaysia is weighing a proposed November exemption from its 10% crude palm oil export tax to help clear high inventories and boost shipments; no decision has been made. Business Outlook: Euro-area business activity cooled in October, while small-business confidence improved despite rising costs, with manufacturers reporting the strongest sentiment. Trade Links: Qatar and Kyrgyzstan agreed to establish a joint business council to strengthen trade ties and explore investment opportunities. Tariffs & Jobs: Flooring businesses warn U.S. tariffs could cut sales by a quarter and put thousands of jobs at risk.

Powering AI Growth: Johor plans to add about 5 gigawatts of solar capacity over four to five years as data centres expand. The state has approved 65 projects, with power demand from the sector projected to reach 30 terawatt-hours annually by 2031. Investment: Brookfield has opened a Doha office as it deepens Gulf activity, including a planned $20 billion AI infrastructure venture with Qatar’s Qai. Small-Business Outlook: India’s MSME confidence index rose to 60.4 from 59.3 despite higher input costs. Malaysia’s Islamic finance sector is also growing, with business financing up 9.7% and microfinance to smaller firms up 13.3%. Trade Links: Brazilian companies plan missions to Việt Nam in 2027 to explore investment and joint ventures; a Chinese trade centre is also seeking more Malaysian firms. Business Costs: Scottish business leaders are pressing the Chancellor for tax cuts and measures to unlock private investment, citing falling confidence and continued labour-cost pressures. India has extended FY26 company filing deadlines, waiving additional fees through December 31 for financial statements and January 31 for annual returns.

Corporate Finance: Meta plans a new non-voting share class for fundraising, employee pay and acquisitions as it expands its AI push. The structure would also preserve Mark Zuckerberg’s voting control. Solar Shakeout: At least 91 U.S. residential solar companies have gone bankrupt, closed or exited since 2022, a new study says; 77 faced bankruptcy proceedings. India Investment: German companies aim to double or triple growth in India over the next three to five years, targeting lower costs and expanded manufacturing. Regional Growth: Selangor is targeting RM90 billion in investment this year after attracting RM70 billion in the first half. Market Access: Bangladesh has reopened direct stock-exchange listings for eligible companies, offering a route to public trading without an IPO. Business Lending: Ghana’s ISSER director urged lenders to offer affordable five-to-seven-year loans to help firms expand and create jobs.

Investment: Selangor is targeting RM90 billion in investment this year after approving RM70 billion in the first half. The state says its economy could grow from RM460 billion to RM500 billion within two years. Postal Growth: India Post reported first-half revenue of Rs 8,212.7 crore, up 24% year on year, with parcel revenue surging 71%. Telecom Deal: Maxis plans to buy Astro’s broadband assets for up to RM83 million, adding 178,631 subscribers as Astro refocuses on entertainment. Business Conditions: October surveys pointed to faster activity in India and strong growth in the US, while eurozone activity slowed amid higher energy costs. Small-Business Costs: A Minnesota flower-shop owner says diesel above $6 a gallon has made supply runs more practical than paying for delivery, adding pressure to a business already balancing rising costs against customer prices.

Malaysia’s Industrial Push: The government wants local companies to make more components, develop technology and move into higher-value exports, reducing reliance on imports. Prime Minister Anwar stressed that strong plans must be matched by effective execution. AI Infrastructure: Investors are selling data-center suppliers despite strong results: Bloom Energy reported sales up 138%, while Comfort Systems’ backlog nearly doubled to $17.8 billion. Corporate Moves: Astro Malaysia agreed to sell its broadband assets to Maxis for RM83 million, freeing cash and focus for its media businesses. American Express plans to cut about 3,500 jobs as it restructures for greater use of AI. Economic Signals: US business activity continued to expand, but prices rose at their fastest pace since 2022; India’s activity reached a four-month high, though hiring remained weak. Trade and Investment: Azerbaijan and India agreed to bring their business communities together, with cooperation eyed in energy, pharmaceuticals, digital services and mining.

Markets: A fresh AI-led selloff hit global stocks as investors questioned returns on heavy tech investment: the Nasdaq fell 2.6% and semiconductor shares 6.7%, while Brent crude climbed to a five-month high above $113 a barrel. Tech volatility is also prompting companies to reconsider IPO plans. Economic Signals: French business activity unexpectedly contracted in October, with the composite PMI at 48.4 amid political and financial pressures. India’s private-sector activity rose to a four-month high, while Taiwan’s manufacturing confidence reached its strongest level in 54 months on AI-related demand. Corporate Moves: Sika agreed to buy Resonac’s Asian adhesives business to expand in automotive and industrial markets. Abbott plans to spin off its nutrition unit, which is projected to generate $8.5 billion in annual sales. Enterprise AI: OpenAI is making its flagship models available through Google Cloud, letting businesses buy them using existing cloud commitments.

Malaysia’s Public Finances: The government estimates the remaining 1MDB burden at RM20.1 billion after RM31.3 billion in recoveries; it has paid RM42.5 billion, with RM8.9 billion in guaranteed notes still due through 2039. It also plans RM1 billion in 2027 to redeem sukuk early and support Tabung Haji, subject to its finances. SME Costs: Malaysia says employers’ 2% EPF contribution for foreign workers balances social protection with business costs. Since the rule began in October 2025, 78,129 employers have contributed for 1.75 million workers; 86% are SMEs. Islamic Finance: Malaysia retained its lead in Islamic finance development for a 14th straight year as the global market grew 9% to US$6.5 trillion. Company Results: Strong corporate results helped lift stocks. SAP reported record quarterly revenue, Nestlé beat sales forecasts, and Abbott plans to spin off its nutrition business in a deal valued at US$8.5 billion. UK Business Climate: Inflation rose to 3.5%, while firms face a £1.1 billion business-rates increase next April and calls for a freeze.

Banking: Barclays’ third-quarter profits rose 12% to £2.3bn, even as it announced 5,000 job cuts—60% in support roles—as it targets £1.1bn in savings by 2027. UK Business: Chancellor John Healey says next week’s Budget will address the cost of doing business, but rising borrowing and limited public finances leave little room for relief. Commodities: Malaysia’s palm oil council expects prices to stay above RM4,600 a tonne in November, with seasonal production declines and biodiesel demand supporting the market. Investment: UK university spinouts raised £1.56bn in the first half of 2026, near a record, but first-time equity investment plunged by more than two-thirds, pointing to a weaker startup funding pipeline. AI and Work: Singapore’s NTUC and KPMG are launching a programme to help companies turn AI adoption into business growth and better jobs.

Markets & Earnings: U.S. stocks rose Wednesday as strong company results lifted sentiment. SpaceX reported $14.58 billion in third-quarter revenue and $4.4 billion in net income, with its AI business now generating more than half of sales. Startup Funding: The British Business Bank committed £2 million to Cambridge Capital Group to expand angel investment for UK technology companies. Worker Protections: Kuwait warned companies that fail to pay wages they will face legal action, citing about 10,000 firms with unpaid expatriate workers and setting the 20th of each month as the salary deadline. Business Taxes: Chicago business groups vowed to oppose Mayor Brandon Johnson’s proposed corporate head tax, warning it could undermine growth as the city faces a budget standoff. Trade & Investment: Qatari and French business leaders called for closer industrial partnerships, aiming to turn diplomatic ties into joint investment, production and innovation.

UK Economy: Inflation rose to 3.5% as motor-fuel costs climbed, while approval for the Jackdaw gas field renewed debate over North Sea supply and energy security. Corporate Moves: Elon Musk called a Tesla-SpaceX merger a “good idea,” with independent committees considering the proposal. SpaceX revenue reportedly surged 161% to $14.6 billion as its AI business overtook Starlink. Malaysia Business: Awantec won a RM8.68 million, five-year ERP contract with TH Plantations. NWE Resources debuted on Bursa Malaysia’s ACE Market above its IPO price and expects tourism spending to support hotel demand. Trade & Infrastructure: Malaysia’s East Coast Rail Link could carry freight equivalent to 90 container trucks per train, offering companies a rail alternative between east-coast ports and Port Klang. Data-Centre Costs: Donald Trump urged large new data centres to generate their own electricity and share surplus power or financial benefits with host communities.

Industrial Investment: Phoenix Tailings plans a $375 million rare-earth processing plant in Rochester, with operations expected to begin in 2027. The facility aims to produce 18,000 tons annually in a market dominated by China. Aviation Outlook: Honeywell forecasts 9,950 new business-jet deliveries over the next decade, up 4.4% from last year, as most operators expect to fly as much or more in 2027. Corporate Watch: Zip named Rory Herriman interim CEO of its U.S. division after Joe Heck resigned. The leadership change comes just before results, and the division generates most of the group’s cash earnings. Investment Climate: Alberta’s vote to remain in Canada eased investor uncertainty, business leaders said. In Argentina, the number of companies has fallen to its lowest since 2007, with 32,290 firms lost since Javier Milei took office amid weak demand and high costs. Chip Demand: Reuters reports Chinese companies ordered more than 3 million Nvidia Blackwell chips, worth a reported $35 billion, though export rules remain a key factor.

AI Infrastructure: Power availability is becoming a constraint on data-center locations, investment returns and AI rollouts, putting energy planning on executives’ agendas. UK Business Outlook: Listed firms issued 65 profit warnings in the third quarter, the most in nearly two years, as costs, conflict and weaker demand squeezed earnings; vacancies also fell below 700,000 despite a lower unemployment rate. Malaysia’s Governance: The government is preparing a State-Owned Enterprises Bill to tighten oversight of public agencies and investment decisions, aiming to pass it this year. Auto Market: Malaysia’s 2026 vehicle-sales forecast remains at 800,000, with national automakers’ strong performance supporting the outlook.