The Brief: Asia's economy, 26 August 2026

Economies

Malaysia's Civil Service Pension Bill Strains Public Funds: Malaysia faces escalating government pension costs. Payments are estimated to reach RM42.8 billion this year, consuming 12.5% of total revenue. This trend diverts funds from critical capital development and talent from the private sector.

Thai Industrial Confidence Rises in July, Fueled by EVs and State Stimulus: Thailand's industrial confidence rose for a second consecutive month in July. Electric vehicle sales and government stimulus measures supported the increase, the Federation of Thai Industries (FTI) reported.

Markets

Alibaba Shares Jump 5% on New Alipay AI Merchant Platform: Alibaba Group Holding shares climbed after Alipay launched an artificial intelligence-powered platform for businesses. This platform automates tasks, driving investor optimism before the company's June quarter earnings report.

Binance Plans Bangkok Blockchain Week for November 2026: Binance will host its Asia Blockchain Week in Bangkok this November. The event focuses on digital asset integration with traditional finance, reflecting Asia's growing role in crypto adoption and regulatory development.

Banking & Fintech

Peter Seah exits National Wages Council; DBS begins chairman search: Peter Seah, 79, stepped down as Singapore's National Wages Council chairman on August 19 for personal reasons. DBS Group Holdings has now commenced a search for a successor to its long-serving chairman.

Industries

Taiwan's InPsytech H1 2026 Revenue Jumps 50.4% on AI Data Centre IP: Taiwan's InPsytech reported a 50.4% revenue increase in the first half of 2026, reaching NT$289 million (US$9 million). Strong demand for artificial intelligence (AI) data centre intellectual property (IP) drove this financial improvement.

UP RERA Amends IFMS Rules for Homebuyer Protection: Uttar Pradesh's real estate regulator, UP RERA, updated Interest Free Maintenance Security (IFMS) fund rules this July. The amendments boost transparency and safeguard homebuyers by ensuring proper fund management.

Hao Mart Shrinks Singapore Outlets to Six Amid Legal Battles, Mounting Losses: Singapore's Hao Mart supermarket chain has scaled back dramatically, reducing its outlets from 51 to six over the past five years. The contraction follows significant financial losses and ongoing legal disputes, forcing the retailer to shutter most of its operations.

Indonesia Petrochemical Expansion Risks Climate Targets, Draws US$6 Billion China-Backed Deal: Indonesia's drive to expand its petrochemical sector, fuelled by significant foreign direct investment (FDI), directly challenges its climate commitments. New large-scale facilities could extend fossil fuel reliance.

Philippines DICT Allocates P28.92M for Satellite Internet in 85 Indigenous Towns: The Philippines' Department of Information and Communications Technology (DICT) will deploy low-Earth orbit satellite internet across 85 indigenous peoples' towns. This P28.92 million initiative aims to bridge the digital divide in underserved areas, with over half the target locations situated in Mindanao.

SK Hynix to Cancel W40tn Shares, Boost Payouts on AI Memory Demand: SK Hynix recently announced a W40 trillion ($28 billion) share repurchase and cancellation programme. This move significantly increases shareholder returns, driven by strong earnings and cash generation from artificial intelligence memory demand.

China Leads AI Open-Model Scale; US AI Competition Shifts to Nvidia, AMD Hardware: Chinese laboratories maintain their lead in frontier open-model parameter scale, a Hugging Face report shows. US competition for AI open models has shifted from software labs to chipmakers like Nvidia and AMD.

Brookfield AM Acquires Japan Residential Portfolio, Targets Triple Apac Real Estate AUM: Brookfield Asset Management expanded its Asia Pacific real estate holdings, acquiring 50 multifamily residential assets across Japan's largest cities. The alternative investment manager aims to triple its regional real estate assets under management, focusing on key property types.

Wealth

India Mandates CA Certification for Overseas Remittances from April 2026: India's Income Tax Department now mandates Chartered Accountant certification for specific taxable foreign remittances from April 2026, streamlining Tax Deducted at Source (TDS) calculations.