AGP Executive Report

Defence & deterrence: India’s Defence Minister Rajnath Singh wrapped up a Vietnam visit focused on maritime security, Indo-Pacific stability, and new tech ties (AI and quantum), with China’s South China Sea posture still driving the push—though a long-discussed BrahMos missile deal again failed to land. Inclusive finance: Brunei Darussalam Central Bank (BDCB) strengthened its FinTech Regulatory Sandbox, widening eligibility to qualified financial institutions and clarifying what can be tested, aiming for faster but safer innovation. Ocean momentum: Ocean Week Brunei opened entries for the Brunei Ocean Arts photography competition plus youth awards, with over BND5,000 in prizes and a “Blue Economy” theme. AI for health: Brunei’s Team ΣHAI won first place at the AI Ready ASEAN Youth Challenge 2026 for Sahabat-Care, beating 600+ submissions. Energy stress abroad: Australia’s “worst-case” fuel rationing plans surfaced as oil markets head toward a “red zone” by August—another reminder of how quickly supply shocks ripple through daily life.

LGBTQ+ rights spotlight: A Dutch embassy-backed exhibition in Thailand, “Amsterdam Rainbow Dress,” marks IDAHOBIT and the 1st anniversary of Thailand’s marriage equality law—but it also lifts the curtain on ongoing fear and stigma for LGBTI people in Brunei and other countries where same-sex relations remain criminalised. Energy security pressure: Australia’s government is preparing “worst-case” retail fuel rationing plans as oil markets head toward a “red zone” by August, while the wider region watches how Gulf disruptions can quickly turn into higher costs and shortages. Brunei innovation win: Brunei’s Team ΣHAI took first place at the inaugural AI Ready ASEAN Youth Challenge 2026 for an AI-powered dementia care platform, showing ASEAN youth momentum toward “AI for an inclusive and sustainable” future. Heat risk planning: ASEAN’s new roadmap pushes passive cooling as extreme heat becomes a health and productivity threat, not just an environmental one. Local climate governance: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, hosted in Brunei. Brunei in the spotlight: A new “Whispers of the Wild: Brunei’s Nature” exhibition opened to boost biodiversity awareness through local art.

Fuel Shock Watch: Australia’s government has drafted “worst-case” plans for retail fuel rationing, including a cap on how much each vehicle can buy per day, as the IEA warns oil markets could hit a “red zone” by August amid Middle East export shortfalls. Pacific Vulnerability: The same squeeze is already biting island economies—Fiji’s fuel crisis is pushing up costs and threatening incomes where oil is imported and populations are small. Brunei Climate Move: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, with the centre set to publish policy recommendations and strengthen regional coordination. Heat Resilience: ASEAN is pushing passive cooling as extreme heat becomes a health and productivity risk, not just an environmental one. Local Business Growth: Inchcape has incorporated Imperial Motors in Brunei to expand its distribution network. Sports & Culture: Brunei’s athletes returned with a bronze from the Melaka Athletics meet, while “Whispers of the Wild: Brunei’s Nature” opened to spotlight biodiversity through art.

Pacific Oil Shock: In Fiji, fuel prices jumped so fast that $100 barely filled a tank—an early sign of how the Iran-linked oil crisis is hitting Pacific islands already strained by climate disasters, with imported fuel pushing up everyday costs and threatening incomes. Green Industry Momentum: Hong Kong’s Northern Metropolis industrial park is drawing “global interest” from AI and environmental firms, with plans to be operational by July next year—showing how green tech keeps pulling investment. Heat Protection Push: ASEAN’s extreme-heat roadmap is urging passive cooling to protect workers and cities as heatwaves intensify and energy systems come under strain. Brunei Climate Step: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, setting up a regional hub hosted in Brunei to coordinate policy and support emissions cuts and adaptation. Local Business Growth: Inchcape Brunei incorporated Imperial Motors Sdn Bhd to expand its automotive distribution network.

New Automotive Push in Brunei: Inchcape has incorporated Imperial Motors Sdn Bhd, a new joint venture to strengthen Inchcape Brunei’s distribution network and expand future automotive opportunities, adding to its existing brands (NBT Brunei, Bravo Auto, and Inchcape Services). Climate Cooperation: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, with the centre set to publish regional policy recommendations and support emissions cuts and climate adaptation. Energy & Food Pressure in the Region: The US extended a sanctions waiver for Russian oil shipments at sea, while reports flag a potential urea shortfall for Bangladesh’s Aman season—both reminders of how quickly global shocks can hit essentials. Biodiversity Spotlight: A Brunei nature art exhibition, “Whispers of the Wild,” opened at the Malay Technology Museum to boost awareness of local wildlife and habitats. Connectivity Watch: A new report warns island nations are highly exposed to undersea cable failures and sabotage, with outages a growing risk for internet-reliant communities.

Automotive Deal in Brunei: Inchcape has incorporated Imperial Motors Sdn Bhd, a new joint venture to expand its Brunei distribution network and build a more scalable, diversified automotive ecosystem alongside NBT Brunei, Bravo Auto, and Inchcape Services. Climate Governance: Brunei has signed on to ratify the ASEAN Centre for Climate Change, aiming to strengthen regional coordination on emissions cuts and climate adaptation. Regional Tech & Connectivity: China’s second domestically built cruise ship begins sea trials, while a new Asia Link submarine cable system has landed in Hong Kong—boosting links that include Brunei. ASEAN Momentum: The week also featured ASEAN-focused cooperation themes, from public-good AI showcases to energy and maritime security discussions. Local Culture & Nature: Brunei’s “Whispers of the Wild” nature art exhibition opened at the Malay Technology Museum, spotlighting biodiversity through local works.

Islamic Finance Spotlight: Brunei-linked institutions are being recognised in the “World’s Best Islamic Financial Institutions 2026” awards, with Standard Chartered Saadiq highlighted across Asia-Pacific—an upbeat signal for Shariah-compliant finance and digital service momentum. AI for Public Good: Singapore’s ATxSummit 2026 kicked off with a focus on using AI to benefit society, featuring ASEAN youth projects selected from hundreds of submissions. Climate Governance: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, aiming to coordinate regional climate action and publish policy recommendations. Energy Pressure: The US extended a sanctions waiver for Russian oil at sea, underscoring how geopolitics keeps reshaping energy access and prices. Brunei in the Region: Ongoing coverage also points to Brunei’s wider ASEAN push—from climate cooperation to regional connectivity and resilience.

AI for Public Good: ATxSummit 2026 opened in Singapore with leaders from across Asia, the Middle East and the US, spotlighting how AI can serve society—plus an ASEAN Youth Showcase of 11 AI-ready projects selected from 600+ submissions. Climate Governance: Brunei has ratified the agreement to establish the ASEAN Centre for Climate Change, with the centre set to publish regional policy recommendations and support emissions cuts and adaptation. Energy Security Pressure: The US extended a sanctions waiver for Russian oil loaded at sea until June 17, aiming to stabilize supplies for energy-vulnerable nations as markets stay volatile. Regional Nature & Culture: Brunei’s “Whispers of the Wild” exhibition opened at the Malay Technology Museum, using local art to raise biodiversity awareness. Brunei in the wider energy mix: China’s new domestically built cruise ship begins trials, while Brunei–China energy cooperation continues to push renewables into industrial operations.

Sanctions & Oil Flow: The US extended a 30-day waiver for countries buying Russian oil already sitting on tankers at sea, running until June 17, aiming to keep supply moving to energy-vulnerable nations amid Middle East-linked market shocks. Regional Energy Pressure: The Strait of Hormuz disruption is still rippling through Southeast Asia’s power and fuel costs, pushing governments to rethink energy security beyond “just buy LNG.” ASEAN Energy Build-Out: Mindanao’s infrastructure push under BIMP-EAGA Vision 2035 is accelerating transport and connectivity, while ASEAN leaders keep talking up energy cooperation and resilience. Brunei Industry & Skills: Brunei has started industrial shipbuilding at Anson International, with a new crew transfer vessel project to support offshore operations. Fertiliser Watch: Reports warn of a possible urea shortfall for the Aman season unless fresh imports land soon. Digital Resilience: A new report flags how island nations’ internet depends on a small set of undersea cables, leaving many exposed to outages from accidents or sabotage.

Cruise Ship Watch: China’s second domestically built mega-cruise ship, Adora Flora City (141,900 gross tons), has started sea trials, with upgrades like a larger atrium and more “paperless” smart systems. Maritime Tensions: The Royal Navy’s HMS Spey has resumed high-tempo operations in the Pacific and South China Sea after a major Singapore overhaul, despite repeated warnings. Energy & Infrastructure: Mindanao’s development authority says infrastructure and energy-linked projects are rising despite political turbulence, with BIMP-EAGA pushing connectivity and investment. Fertiliser Pressure: Reports warn Bangladesh could face a urea shortfall ahead of the Aman season after failed tenders, with stock levels still below the “comfortable” benchmark. Cable Risk: A new report flags island nations’ heavy reliance on a small number of undersea cables, leaving many exposed to outages from accidents or sabotage. Brunei-Region Energy: Brunei and China continue scaling renewables integration at Hengyi’s refinery via the SINAR solar project.

Indo-Pacific Patrol Resumes: After a major overhaul and fresh training, the Royal Navy’s HMS Spey has returned to high-tempo operations in the South China Sea and around the Spratlys, continuing patrols despite repeated China warnings—an immediate reminder that freedom of navigation remains a live flashpoint. Energy & Infrastructure Push: Mindanao’s development authority says infrastructure and energy projects are rising even amid political turbulence, with hundreds of projects expanding connectivity and airport upgrades. Fertiliser Supply Pressure: Urea stocks are tight ahead of the Aman planting season, with failed tenders and supplier hesitation linked to wider shipping uncertainty. Cable-Risk Warning: A new report flags that many island nations depend on a small set of undersea cables, leaving them exposed to outages from accidents or sabotage. ASEAN Energy Resilience: ASEAN leaders keep circling the same problem—how to secure fuel and electricity when chokepoints and prices swing fast. Brunei-China Energy Link: Brunei and China continue scaling cooperation, including Hengyi’s solar integration at Pulau Muara Besar.

Fertiliser Crunch: Bangladesh is reportedly facing a urea shortfall of about 100,000 tonnes for the Aman planting season after two international tenders failed to secure enough supply, with the agriculture ministry holding 3.54m tonnes versus a ~4m benchmark; even with domestic plants back online, July demand is expected to outstrip availability as suppliers hesitate over Strait of Hormuz shipping uncertainty. Digital Lifeline Risk: A new report warns island nations are dangerously dependent on a small set of undersea cables—faults often come from accidental anchoring—raising the stakes for internet blackout prevention. ASEAN Energy Pressure: ASEAN leaders are pushing practical fixes for energy shocks and resilience after Middle East-driven fuel volatility, including moves toward regional coordination on fuel and fertiliser security. Brunei-China Energy Push: Brunei and China’s cooperation continues with Hengyi’s SINAR solar project, aiming to cut emissions and raise renewable share in refinery operations. Local Development: Brunei’s Anson yard has begun industrial shipbuilding at Pulau Muara Besar, starting with a crew transfer vessel for offshore operations.

Aidiladha Date Set: Malaysia’s Conference of Rulers confirmed Hari Raya Aidiladha will be celebrated on Wednesday, May 27, with the Zulhijjah crescent moon falling on 1 Zulhijjah 1447H. ASEAN Energy Shock: ASEAN leaders are still grappling with the fallout from Middle East-linked fuel disruptions—LNG prices have jumped sharply, pushing governments toward faster energy switching and resilience planning. Digital Security Push: Across ASEAN, rapid cloud and AI adoption is expanding the “identity” layer of cyber risk, while regional privacy rules are tightening expectations for auditability and accountability. ASEAN Chair Spotlight: The Philippines’ ASEAN chairship is set to take centre stage at the BusinessWorld Economic Forum (May 18), with discussions on turning ASEAN priorities into corporate action. Brunei in the Mix: Brunei’s energy cooperation with China continues to move from plans to projects, including Hengyi’s solar integration at Pulau Muara Besar.

Sri Lanka Airlines scandal: SriLankan Airlines’ former CEO Kapila Chandrasena’s death has sparked political noise and social-media speculation, prompting Transparency International Sri Lanka to demand a full, transparent, credible investigation and protection for those involved in the judicial process—while urging people to wait for the magisterial inquiry instead of jumping to conclusions. ASEAN digital resilience: Across ASEAN, faster cloud use and AI are expanding the “identity” security perimeter, with regulators in the region tightening expectations around personal data and access decisions. ASEAN chair spotlight: The Philippines’ ASEAN chairship is set to take centre stage at the BusinessWorld Economic Forum 2026, with discussions on turning regional priorities into corporate action. Food and farm funding: The World Bank and UK backed a $1B Philippine sustainable agriculture push, tying disbursements to verified targets to boost rice output, climate-resilient value chains, and farmer livelihoods. Brunei energy and industry: Brunei has begun industrial shipbuilding at Anson, while China-Brunei energy cooperation continues to expand, including a major Hengyi solar integration project. Maritime cooperation: ASEAN leaders adopted a maritime cooperation declaration reaffirming UNCLOS and peaceful dispute resolution.

BIMP-EAGA Vision 2035 Momentum: Mindanao is pushing BIMP-EAGA’s next decade with 265 priority infrastructure projects worth about $174.6bn, aiming to speed up cross-border trade, tourism, investment and connectivity—building on the original 1994 plan to link remote border regions through roads, ports and private-sector-led growth. Philippines Farm Boost: The World Bank and the UK backed a $1bn Philippine Sustainable Agriculture Transformation (PSAT) program to modernize rice-based farming, strengthen value chains and climate resilience, with funding tied to targets. ASEAN Energy & Maritime Push: ASEAN leaders in Cebu adopted a maritime cooperation declaration and put energy security front and centre amid Middle East-driven fuel shocks. Brunei in the Mix: Brunei has started industrial shipbuilding at Anson (Hull 211) and continues energy cooperation with China, including Hengyi’s SINAR solar integration. Regional Tech Links: China Telecom completed the Asia Link submarine cable landing in Hong Kong, connecting Brunei and the region.

Agri Boost for Food Security: The Philippines, with the World Bank and the UK, just launched a $1B Sustainable Agriculture Transformation program to modernize farming and strengthen food supply, using “pay-for-results” targets before funds are released—aimed at boosting rice-based output, making value chains more efficient and climate-resilient, and improving institutions, with an expected $300M start in 2026. ASEAN Energy Pressure: Across ASEAN, leaders are still scrambling to manage fuel and food shocks tied to the Middle East, with talks at the 48th summit pushing regional coordination, including energy resilience and disaster readiness. Brunei-China Green Industry: Brunei and China also highlighted practical energy cooperation, including Hengyi’s SINAR solar integration at Pulau Muara Besar to cut emissions and raise renewable energy use. Connectivity Upgrade: China Telecom completed a major Asia Link submarine cable landing in Hong Kong, linking China, Singapore, the Philippines, Vietnam, Brunei and Malaysia—another step for regional digital and trade links.