Business
Is AI ‘going rogue’ or just following orders?
From rogue agents to autonomous weapons, the distance between science fiction and operational reality is narrowing, as Sham Banerji reports.
Bisinomics
Shanghai Cooperation OrganisationSummits of the Shanghai Cooperation Organisation (SCO) and BRICS took place within less than a fortnight of each other. The first, marking the 25th anniversary of the body, was held at Bishkek in Kyrgyzstan. The second was held in New Delhi.The SCO is a 10-member group. Unsurprisingly, the headlines emerging from its summit were the censure of the United States and Israel’s militarism against Iran, since the latter is one of its members and heavyweights like China and Russia generally call the shots at SCO’s apex-level meetings. Indeed, its official languages are Chinese and Russian.Considering the crisis generated in oil, gas and fertiliser supplies from Gulf countries and Iran by the war in West Asia, the SCO’s heads of government declared, in a resolution released on 1 September, that ‘the member states intend to consistently develop practical and mutually beneficial cooperation in the energy sector in the areas of energy conservation and improving energy efficiency, based on respect for national interests.’In a twin communique, ‘the leaders’ of member states – not merely the ones represented by heads of state – ‘affirm that modern energy systems should develop without borders, barriers or artificial restrictions… They advocate energy justice, ensuring access to energy resources and modern technologies for all countries.’ They support ‘the development and interconnection of regional energy markets’ and recognised ‘the important role of developing cross-border energy infrastructure’. They also intended ‘to join efforts to attract investment’.China’s rapidly expanding renewable-energy capacity is increasingly important to discussions about regional energy cooperation and investment. Photo: ShutterstockThe heading of a story on the outcome of the summit in The Diplomat was 'SCO Summit Produces Surprising Winners'. Notably, China has a massive surplus in generated renewable electricity, a lot of which remains unutilised.BRICSThere are now 11 member countries constituting BRICS and 10 partner states. With Iran on the one hand and US allies Saudi Arabia and the United Arab Emirates on the other seated around the table – and following the failure of the BRICS foreign ministers’ meeting in May to arrive at a consensus for a joint statement – host India pitched the theme of the conference as ‘Building for Resilience, Innovation, Cooperation and Sustainability’ – in an attempt to divert focus from the Iran-Gulf nations confrontation.Member states reaffirmed their ‘unwavering support for reform of the World Trade Organisation (WTO) and to strengthening a non-discriminatory, open, equitable, transparent, fair, inclusive, predictable and rules-based multilateral trading system’. Without naming the US, they proclaimed, ‘We condemn the imposition of unilateral coercive measures that are contrary to international law.'In the event, a spirit of cooperation between the participants found wording acceptable to all parties in respect of the confrontation across the Persian Gulf, albeit rather evasively. A declaration said: ‘We express deep concern over the continued escalation of tensions in Middle East-West Asia and, recalling our respective national positions, call for exercising maximum restraint, as well as avoiding actions that could further aggravate the situation.’The good news was that Iran’s president, Masoud Pezeshkian and the crown prince of Abu Dhabi, Khaled bin Mohamed Al Nahyan, representing the UAE, engaged in unscheduled talks. Thereby hopes arose of a rapprochement between Iran and the Gulf states in the medium term, slightly sidelining the US. PhilippinesPhase 1 of what will be the world's largest solar-battery facility is now operational in the Philippines. Asian Business Review reported, ‘MTerra Solar, a joint investment between Meralco PowerGen Corporation (MGEN) and Actis, is designed to deliver 3,500 MWp of solar PV capacity – so far around 1,373 MW has been energised. This will be paired with 4,500 MWh of battery storage when fully completed.’ The Philippine government’s target is to raise renewable energy’s share in power generation in the country to 35 per cent by 2030 and 50 per cent by 2040.Philippine President Ferdinand Marcos Jr. inaugurates Phase I of the MTerra Solar Project, part of the country’s push to expand renewable-energy generation and strengthen its power supply. Photo: Presidential Communications OfficeSaudi ArabiaIraq-based militias launched drone attacks on Saudi Arabia's East-West pipeline, while separately, Yemen's Iran-backed Houthi rebels ramped up their own attacks on Saudi Arabia. Both affected vital oil supplies and could be a problem unless the sides reach an understanding.CNBC aired satellite photos which showed the extent of damage caused by a drone strike on Saudi Arabia’s East-West pipeline, a highly strategic network that transports crude oil from Abqaiq on the kingdom’s eastern Gulf coast to the port of Yanbu on the Red Sea. There was fire damage and blackened areas in and around a pumping station on the pipeline.Saudi Arabia’s East-West pipeline and the UAE’s Habshan–Fujairah route provide alternative export corridors when shipping through the Strait of Hormuz is disrupted. Map: U.S. Energy Information Administration/CC0Saudi Arabia closed the 750-mile system, called Petroline, as a precaution. The drones targeted a key stretch of the pipeline in the Riyadh and Medina regions. Since the war between the US-Israel alliance and Iran virtually closed the sea route via the Strait of Hormuz, the Saudis have relied on the East-West pipeline to export oil from outlets on the Red Sea. Following recent expansion, the East-West pipeline has the capacity to move seven million barrels of oil a day.The Houthis also launched a lightning ground offensive to seize control of another critical supply point – Bab el-Mandeb Strait at the mouth of the Red Sea. CNBC reflected concerns that the development ‘could have significant ramifications for energy markets and global trade, particularly if the militant group ratchets up threats or attacks on Red Sea shipping.'JapanThe Japanese car industry has been one of the engines of international economic activity. Toyota is the world’s biggest car manufacturer. Japan and the UK are poised to boost exports and manufacturing between them. ‘UK and Japan seek to fully benefit from “Made in Europe” car sector rules,’ the Financial Times noted. This referred to protectionist policies about to be introduced by the European Union to counter lower-priced Chinese automobiles flooding the European market.Japan’s automotive industry is seeking to protect its access to European markets as the EU develops new rules favouring locally based manufacturing. Photo: ToyotaSouth Korea and TaiwanThe South Korean won and the Taiwanese dollar have not benefited from the AI explosion. Capital Economics observed, ‘The ongoing AI boom has not translated into stronger currencies in Korea and Taiwan, despite surging semiconductor exports.’SingaporeFinally, the Singaporean prime minister is widely known to be the world’s highest-paid elected leader. The island state’s head of government, Lawrence Wong announced in the country’s parliament that ministerial salaries will be adjusted upwards, having remained unchanged for 15 years. CNBC confirmed that ‘following the revisions, Wong’s annual pay package will rise from SG $2.2 million to 3.6 million Singapore dollars or US $2.85 million.’Singapore Prime Minister Lawrence Wong speaks to reporters during a visit to Bangkok in September 2026, as his government prepares to implement revised ministerial salaries. Photo: Reuters
Bisinomics
Saudi ArabiaAs the Kingdom of Saudi Arabia enters its 95th year of existence, the buzz in the country continues to be about ‘Vision 2030’. Around 1938, the sandy state discovered oil. This made it incrementally wealthy in the 20th century and the affluence spilled over into the new millennium.It is a decade since the transformation document was launched. Its primary goals were to prepare for a post-oil economy and society, which meant lower dependence on fossil fuel income, diversification of its economy and modernisation of its society, including enabling more home ownership for Saudi nationals. The project outlined a better quality of life and modern amenities for its citizens and visitors, a preservation and highlighting of its heritage, including rendering these into international tourist attractions.On the economic front, the aim was privatisation, non-oil GDP growth and foreign investment. It kick-started efforts to make government efficient and transparent and develop a local talent pool. The Vision is driven by the Saudi crown prince Mohammed bin Salman, who has also been the country’s prime minister since 2022. It is undoubtedly wide-ranging in its concept. NEOM’s ambitious developments are among the most prominent symbols of Vision 2030, although investment pressures have forced Saudi Arabia to scale back some of its original plans. Map illustration: The Economist The scheme involved: the creation of a US$500 billion high-tech city named Neom – boasting a 170-kilometre long mirrored skyscraper urbanisation, sustained wholly by renewable energy; a tourist destination on the Red Sea spanning an archipelago of more than 90 untouched islands; Qiddiya City, a mammoth sports and cultural metropolis, where Saudi Arabia will host the 2034 FIFA World Cup; and a US$62 billion restoration of Diriyah, the ancestral home of the Saudi royal family, into a heritage hub.The Vision relaxed hitherto rigid religious rules which commanded Saudi society. Women are now able to drive motor vehicles unaccompanied by a man. Those above 21 can travel abroad without needing consent from a father, husband or male guardian. Commercial cinema halls reopened in 2018 after a 35-year ban. Music festivals are now allowed to feature non-Muslim performers. Foreign female visitors are no longer required to wear the abaya, a traditional Arab-style loose robe, though modest dressing in public is still expected. Unmarried foreign couples are allowed to share hotel rooms; and gender segregation in public places is no longer mandatory.Saudi women have gained greater freedom to drive, travel and participate in public and economic life as the kingdom implements the social reforms of Vision 2030. CNBC reported that non-oil enterprise now contributes over 50% of Saudi Arabia’s GDP. Tourism, tech and manufacturing bolster this progress. Unemployment has dropped from 12% in 2016 to just above 7%, according to Eric Kimberling, chief executive of Third Stage Consulting, who said digital change has conjured this. But there are challenges. The flow of investment funds has not met up to expectation, which has forced a paring down of the Neom dream. The Saudi economy and therefore financial capability remain vulnerable to global oil price stability. Human rights groups, including Amnesty International, highlight worker safety at construction sites and the forced eviction of tribes during land clearance.Incidentally, Saudi Arabia’s ‘Vision 2030’ is not the first of its kind in the Gulf. There was previously the United Arab Emirates’ ‘Vision 2021’; and concurrently there is Kuwait’s ‘Vision 2035’.ChinaEurasia Business News flagged Asian stock markets and economic metrics show mixed trends, supported by cooling US inflation and AI tech demand, but pressured by ongoing oil volatility, sliding domestic consumption in China and escalating trade tensions. Nikkei Asia indicated that in July China’s bank loans experienced a record contraction due to weak domestic credit demand. Unconnected to that, Beijing introduced new offshore tax policies. CNBC reported that ‘while the rules ended decades of regulatory ambiguity about the vehicles, they have also created fresh confusion over implementation’. China’s economy is showing mixed signals, with technology demand providing support while weak domestic credit and consumption weigh on growth. Photo: CFAIn August, Zhu Rongji, a former Chinese premier who helped turn China into a trading giant, died at the age of 97. BBC said he ‘played a leading role in securing [China’s] entry into the World Trade Organisation, opening Chinese factories to the international market and drawing foreign investment’.JapanMeanwhile, the media in general noted Japanese markets tracked global tech gains, though the yen’s movement sparked debate regarding potential currency interventions; and megabanks intensified a push into ultra-wealth management.Japan Today reported that Japan’s summer tourism season saw a shift from China-driven demand. It said ‘The number of Chinese visitors to Japan in the first six months of this year dived 56.4 percent from a year earlier, as Prime Minister Sanae Takaichi’s contentious remarks in parliament last year over how Japan might respond to a crisis over Taiwan. China, angered by the remarks, advised its citizens not to travel to Japan and ramped up economic pressure.’ However, Japan National Tourism Organisation data reported that a steady increase in visitors from South Korea, Taiwan, Southeast Asia, Europe and the United States helped offset the decline.IndiaIndia’s trade deficit in goods and services has been ballooning. Its foreign exchange reserves climbed back above US$700 billion on strong financial inflows. Reuters reported that this occurred ‘under policy measures to strengthen India’s balance of payments’. It added ‘the swap facilities drew flows worth over US$40 billion’. Natarajan Chandrasekaran’s decision not to seek another term at Tata has put the conglomerate’s strategy, including its costly Air India turnaround, under renewed scrutiny. Photo: News Bytes In the corporate sector, Natarajan Chandrasekaran, surprisingly announced that he would not seek reelection as CEO of India’s largest conglomerate, Tata. The news was widely reported given the group’s international presence, especially in Britain where it owns Jaguar Land Rover and several other companies across sectors. Under his nine-year stewardship, most Tata companies significantly enhanced their turnovers and profits. But not Air India, which returned to its stable from Indian government control in 2022. Tata’s attempt to turn around the airline has resulted in heavy losses not only for Tata but its partner in the venture, Singapore Airlines. The Hindu headlined, ‘Chandrasekaran’s exit puts Tata’s Air India bet under fresh scrutiny.’ Southeast AsiaMalaysia’s central bank disclosed second quarter GDP growth beating expectations, while Indonesia faced structural and energy exposure linked to elevated global oil benchmarks.Malaysia’s stronger-than-expected growth contrasts with Indonesia’s exposure to elevated global energy prices, highlighting divergent economic pressures across Southeast Asia. Photo: Firdaus Latif
The miracle island that is Taiwan
The AI boom is supercharging Taiwan’s economy, putting the world’s biggest semiconductor supplier at the centre of the latest tech revolution, while also renewing fears about the intricate links between its national security and the global supply chain. Helen Davidson reports.
Tata family back in control
A boardroom battle between N. Chandrasekaran, who has been the executive chairman of Tata Sons, for the past ten years, and Noel Tata, the chairman of Tata Trusts, that has a 66% controlling interest, has left the affairs of India’s biggest conglomerate in disarray following the unprecedented postponement of the company’s annual general meeting. John Elliott reports.
Bisinomics
Despite a challenging trade environment and tariffs, China had strong GDP growth in the first quarter of 2026,’ The Wall Street Journal reported. There’s been 5% year-on-year growth
Where is India’s economy heading?
As rising fuel and food prices test Indian households, Sam Tully asks whether digital infrastructure and AI can power India’s next economic leap.
Bisinomics
Taiwan Semiconductor Manufacturing Company, which dominates production of the world’s most advanced chips, reported May revenue up nearly 30 percent year on year after debuting its advanced A13 process technology earlier this year.
The Xi-Trump talks: was anything achieved?
The talks between presidents Xi Jinping and Donald Trump were important and timely though the mood music was subdued. Expectations were low and were, if anything, underachieved with little more than a few gestures of commercial goodwill. Former British minister for Business, Skills and Innovation Vince Cable reports.
Bisinomics
India is the world’s third-largest importer of oil. It faces a ballooning economic challenge because of the sharp increase in energy prices and an uncomfortably low level of reserves caused by reduced supplies from the Persian Gulf following the virtual closure of the Strait of Hormuz.
Bisinomics
Post-war reconstruction is in the minds of Arab partners of the United States, who were collateral casualties in the hostilities between the US-Israel alliance and Iran. Indeed, Saudi Arabia, among others, pressed Washington to return to the negotiating table, as The Wall Street Journal revealed.
Big Tech’s seatbelt moment
As lawsuits mount and governments move towards tougher safeguards, the question is no longer only what appears on the screen, but why the screen was built to behave that way in the first place. Sham Banerji reports that a new regulatory phase may be opening for social media and AI.
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