AGP Executive Report

MSME Payments Reform (India): India’s Rajya Sabha passed the MSME Development (Amendment) Bill, 2026 to tackle delayed payments, set fixed timelines for mediation/arbitration, require CPSEs to settle via TReDS, and allow buyers to deposit part of awards while also decriminalising some offences. SME Cashflow Pressure (Rajasthan): Despite more MSME facilitation councils, Rajasthan still has 3,900+ pending MSME payment disputes, with many involving government departments and repeated hearings blamed for slow outcomes. UPI Merchant Fees (India): The government tabled a Payment and Settlement Systems amendment that creates a legal basis for merchant discount rates on digital payments, with UPI fees still under discussion. Inclusive Entrepreneurship (India): IIM Indore launched a Business Accelerator Programme for SC/ST entrepreneurs under the National SC-ST Hub, offering skills, mentorship, networking and procurement links. SME Tech & Manufacturing (Hong Kong/China): LONGER opened worldwide pre-orders for its ePrint desktop UV printer, pitching “true 3D textured” output for creators and small businesses. Cyber Risk for Small Networks (Global): Researchers say multiple Zbtlink router models ship with a backdoor, raising concerns for small offices and home networks. SEZ Slowdown (Kenya): Kenya’s Dongo Kundu SEZ faces delays from slow infrastructure rollout, even as new investors plan manufacturing starts.

SME Finance & Tokenization: Nomura’s Laser Digital backed ZIGChain’s onchain private credit push in the UAE, aiming for at least $100m in total value locked and adding structuring/risk oversight for SME lending, invoice factoring and stablecoin rails. SME Policy & Costs (Singapore): A SCCCI survey of 540 firms found 80% worried about rising costs amid Middle East-driven uncertainty; 78% expect to stay profitable in 2026, while businesses are cautiously testing AI and diversifying markets. Digital Payments (India): Parliament has tabled changes that could bring merchant discount rates (MDR) back to UPI, with fees potentially applied to payments above ₹2,000—an issue that could reshape how merchants and payment firms fund growth. MSME Credit (India): Indian Bank set a target of ₹35 lakh crore total business by 2032, after crossing ₹15 lakh crore, signaling continued push to scale lending. Energy for Small Businesses (India): Tata Power is bundling rooftop solar with battery storage to cut grid dependence and diesel backup needs, targeting faster adoption for homes and commercial users. Construction Lending (US, local banks): Gateway Bank added construction-lending leaders to grow its construction loan portfolio—an indirect read-through for SME builders seeking credit.

UPI Fees in the Spotlight (India): India has introduced amendments to the Payment and Settlement Systems Act that create a legal path to bring back Merchant Discount Rate (MDR) charges on UPI payments, though details like fee levels and which merchants pay are still undecided; Reuters reports options such as charging only above a Rs 2,000 threshold or based on merchant turnover. MSME Finance Boost (India): GetVantage raised Rs 63 crore (equity+debt) in a Series A1 “Scale Capital” round to expand its Capital Gateway API ecosystem for embedded cash-flow financing to MSMEs. Smart Estate Tech (Singapore): EM Services and SPTel signed an MOU to deploy digital connectivity and IoT for smart estate management, starting with smart rodent monitoring in selected estates. ESG Push by an SME (India): EP Biocomposites commissioned a 30-kW rooftop solar system in Goa and was recognized for a large-scale environmental pledge drive. AI Security Shake-up (Global): Anthropic said its models were hacked and only noticed after OpenAI’s disclosure, prompting renewed calls for stronger AI safety review. China Manufacturing Pressure: Small factories in Zhejiang and Jiangsu report falling orders, delayed payments, and tougher tax scrutiny, raising survival fears.

Distributed Solar Push: India’s distributed renewable energy hit 31.5 GW in FY2026, led by rooftop solar under PM Surya Ghar and PM KUSUM, even as renewables’ overall share stayed around 21–22%, per IEEFA. MSME Export Gap: A new take on India’s MSMEs says only 1–2% are active exporters, arguing the bottleneck is “intelligence” (export know-how), not capability. Cross-Border Payments for Small Firms: City Bank in Bangladesh became the first to validate and execute live SWIFT retail cross-border payments under the new scheme, enabling faster remittances and e-commerce receipts into Bangladesh. SME Credit Boost: SIDBI expanded with 71 new branches and lifted direct MSME lending by 36.8% YoY to Rs 51,687 crore, aiming to reach MSME clusters faster. Startup Funding for MSMEs: India saw fresh rounds including Vaaree (home décor marketplace) and GetVantage (MSME financing), plus Google’s Play Accelerator India picking 20 startups for a 3-month equity-free push. Energy Policy Pressure: Punjab urged the Centre to suspend mandatory E20 rollout, warning it could raise costs and create vehicle compatibility issues for small businesses and commuters. Micro-Enterprise Finance in Africa: EIB-backed funding helped Uganda support 24,000 micro-enterprises, with women and rural projects taking the lead. Tariff Fight (US spillover): 25 US states sued over Trump’s new tariffs, arguing they’re unlawful and hit families and businesses.

Tariff Shock in the US: Twenty-five Democratic-led US states sued to block Trump’s latest 10%–12.5% tariffs on imports from 60 trading partners, arguing the move is an illegal “pretext” to replace duties struck down by the Supreme Court—an issue that hits small firms via higher prices. SME HR Digitisation (India): MedleyHR launched a self-serve HR and payroll platform for India’s MSMEs, including a permanent free plan for businesses up to 10 employees, aiming to replace spreadsheet-based HR. Singapore Industrial Push: UOB and JTC teamed up to route businesses into Singapore’s industrial estates, pairing referrals with credit, sustainable financing and SME supply-chain support. MSME Credit Boost (J&K, India): SIDBI sanctions to Jammu and Kashmir MSMEs rose sharply to Rs 40.07 crore in 2025-26, with the government citing expanded direct/indirect and digital lending. Policy for Data Centers (US, local): In Watertown, gubernatorial candidates debated limits on new AI data centers, with one proposing a one-year moratorium to improve community control. AI Procurement Tip (US): USTDA published an AI RFP clause that treats AI use in services as a “permit office” approach—something other agencies could copy. Transport Reliability (India): A survey found 76% support penalties for app taxi drivers who cancel confirmed rides, echoing Maharashtra’s aggregator policy.

SME Finance Boost: The Asian Development Bank will unlock up to $2.5 billion for small businesses and affordable housing by partnering with global insurers to share credit risk, aiming to expand lending across Asia-Pacific. MSME Policy Push (India): India’s Rajya Sabha passed the MSME Development (Amendment) Bill, 2026, targeting faster cash flows, fewer payment delays, and simpler compliance for micro, small and medium enterprises. Corporate Compliance Overhaul (India): A joint parliamentary panel backed the Corporate Laws (Amendment) Bill, 2026, recommending more decriminalisation of procedural lapses, fixed Rs 50,000 penalties for certain defaults, in-kind CSR for small firms, and easier foreign-company re-domiciliation to IFSC. ASEAN Chairship Focus (Philippines): Experts say the Philippines’ 2026 ASEAN chairship is a chance to turn digital transformation, resilient supply chains, and inclusive growth priorities into measurable action for MSMEs. SME Capacity Building (Nigeria): Keystone Bank, with NACCIMA and SMEDAN, rolled out an entrepreneur training programme covering credit readiness, tax compliance, and scaling strategies. Herbal Industry Plan (Malaysia): Malaysia’s health ministry says the herbal sector could generate RM30–50 billion in value over the next decade, with emphasis on cultivation, clinical validation, IP protection, and export-oriented halal products. Business Growth (India): Google selected 20 AI-powered Indian startups for its 2026 Play Accelerator India programme, including tools to help small businesses get paid faster.

SME Credit Pulse (India): India’s bank credit grew 18.6% YoY in June 2026, with retail lending up 15.8% and stronger flows to NBFCs and commercial real estate—good news for borrowers and lenders alike. Fraud Watch (India): A viral scam warns shopkeepers about a cloned PhonePe app that can show “payment successful” screens without real transfers, pushing merchants to verify via official channels. IPO Tracker (India): H.R. Hygiene Products is set to finalize allotment today, with listing on BSE SME expected Wednesday; meanwhile Propshop Events and Exhibitions debuted on NSE SME at a 20% discount. MSME Finance Push (Philippines): LANDBANK is rolling out digital tools and the LIFTING MSMEs programme in Naga City, pairing affordable loans with cashless adoption support. Payments Shift (Mongolia): Golomt Bank says 96% of yuan transactions moved to China’s CIPS after six months, cutting settlement time and costs for cross-border traders. Regulatory Burden (Bhutan): Bhutan’s business review flags 111 regulatory issues weighing on private firms, especially SMEs, as the country targets a lighter compliance load. Broadband for Rural Users (India): BSNL launched a budget plan at ₹259/month (about ₹241 with annual billing) offering up to 25 Mbps and 700GB monthly data. Energy Compliance (India): PMUY LPG beneficiaries must complete Aadhaar e-KYC by Aug 16 or risk losing domestic-rate cylinder access. ASEAN Business Link (Vietnam/ASEAN): CT Group’s chairman met ASEAN’s secretary-general to discuss high-tech solutions for regional challenges, including health and climate resilience. AI for Lending (Nigeria): World Bank’s chief economist says AI can help regulators and lenders allocate capital better, especially where SMEs lack traditional credit histories. Quick Commerce Reality Check (India): Swiggy’s Instamart hit contribution break-even, but guidance uncertainty remains as Zepto’s IPO plans pause. Owner-First AI (Hospitality): Wyndham says it’s using AI and loyalty data to lower prices and improve offers while protecting franchise owners’ margins. Policy Apology (New Zealand): PM Christopher Luxon apologized after comments to Rotorua businesses about a “parent-child mentality,” acknowledging small firms are under strain.

Philippines Power Policy: Consumers got a headline win as the SONA pledge targets scrapping “system loss” charges, but a critical read warns the cost can simply reappear under other tariff lines—so rate relief may not be real, especially with EPIRA changes taking up to a year. China Monetary Support: The PBOC signalled more easing, pledging ample liquidity and lower financing costs while boosting support for tech, green projects, and small firms. India SME Credit & Payments: India pushed invoice payments discipline for MSME suppliers via RBI-authorised TReDS platforms for central PSUs—aimed at faster cash flow for small vendors. India Gold Loans Boom: Muthoot Finance reported strong Q1 FY27 growth, with gold loan AUM and profits rising sharply, underlining demand for secured credit in smaller markets. Cambodia Digital Skills Push: Cambodia launched “Powered by Cambodia” with a Tech Sprint Day bringing SMEs and startups together for practical AI and digital tools. New Zealand Seasonal Work: Tonga workers continue using New Zealand’s RSE scheme to fund and sustain small businesses back home, with participation still rising. Cross-border Payments Startup: TaqFlow emerged from stealth to target faster, cheaper Central Asia payments, aiming to cut settlement delays and currency volatility for SMEs. WhatsApp for Business: WhatsApp is reportedly preparing to separate business messages into “Offers & Updates,” a potential shift for how small merchants reach customers.

Philippines Politics & Cost of Living: President Ferdinand Marcos Jr. delivered his fifth State of the Nation Address, pitching tax relief and power reforms aimed at easing electricity bills and living costs—moves that will still need Congress to back them. Pacific Labour & Micro-Enterprise: New Zealand’s RSE scheme is helping Tongans earn and restart small businesses back home, with officials saying the temporary-worker model is boosting family income and local jobs. AI Skills Gap in Cyprus: Cyprus shows a mismatch—high consumer AI use but low business adoption—while employers struggle to fill thousands of roles as demographics tighten the labour market. India Manufacturing Push: PM Narendra Modi said Andhra Pradesh is set to become a major manufacturing hub, pointing to airport investment and big tech/pharma plans. UNDP on Inclusive Tech: UNDP urged Asia-Pacific governments and firms to build inclusive digital tools so AI benefits everyone, especially SMEs and marginalized groups. Cambodia Payments Upgrade: Cambodia expanded ASEAN cross-border QR links via Bakong/KHQR, making local-currency payments easier for travellers and small merchants. India SME Credit & Payments: India moves CPSE invoice settlement for MSME suppliers onto TReDS, while policy talk also highlights safer, more flexible credit design for small borrowers. WhatsApp Business Inbox Change: WhatsApp is testing an “Offers & Updates” folder that auto-sorts messages from large businesses to reduce inbox clutter.

Inclusive Tech Push: UNDP experts in Shenzhen urged Asia-Pacific governments and firms to build inclusive digital tech from the start, warning that AI can widen gaps if marginalized groups aren’t designed in. Cross-Border Payments: Cambodia expanded ASEAN cross-border QR links with Lao PDR, Malaysia, Singapore, Thailand and Vietnam via Bakong/KHQR, aiming for easier local-currency retail payments for merchants and small enterprises. MSME Credit & Payments: India moved CPSE invoice settlement for MSME suppliers onto RBI-authorised TReDS platforms, while commentary argues credit products must move beyond one-size-fits-all lending to protect borrowers as UPI credit becomes more common. Women in Value Chains: A new analysis highlights that women aren’t absent from global value chains, but are concentrated in lower-value segments—raising the stakes for better credit and upgrading. India Business Finance: Bajaj Finance got a “Buy” upgrade from Motilal Oswal with a Rs 1,300 target; Muthoot Finance reported Q1 FY27 profit up 25% with gold-loan AUM surging 44%. SME Market Watch: India’s NSE SME-listed GSM Foils shares hit the 20% lower circuit after a firing incident involving the MD and police custody of a director. Cost Relief for Small Firms: India cut 19-kg commercial LPG prices by about Rs 200 in major cities (Delhi and Kolkata), while domestic LPG stayed unchanged.

Renewables Boost for Industry: South Africa’s Seriti Green’s Ummbila Emoyeni Wind Farm has entered commercial operation in Mpumalanga, a signal that power supply is shifting to renewables while supporting mines, factories and local SMEs. Energy Costs for Small Businesses: India cut commercial LPG prices again—19-kg cylinders down by ₹202 in Delhi and ₹209 in Kolkata from Aug 1—bringing Delhi to ₹2,728 and Kolkata to ₹2,872.50, while domestic rates stayed put; restaurants and caterers get direct relief. SME Banking Access: India Post Payments Bank (IPPB) rolled out SHG Savings Accounts nationwide via 1.64 lakh post offices, with no minimum deposit or monthly balance, plus doorstep banking using postmen and GDS staff. AI for Retail Hair Services: EastAid and Junoh Hair Japan plan a 3-month pilot in Tokyo using AI “Mevu” to let customers preview K-Hair styles before treatment, then expand across Japan. Niche Retail Survival in Singapore: A look at how small grocers like Anna’s Gourmet survive by specializing in Central/Eastern European products, proving that targeted assortments can beat mass-market sameness. Media Grants for SMEs: Nigeria’s Afia Media launched “Obuzo,” an advertising grant to help South-east SMEs access TV/radio promotion after seeing how features on its “How Market” programme drove new orders. EV Market Pulse (China): NIO reported July deliveries up 71% year-on-year to 35,934, with cumulative deliveries at 1.22 million—useful context for suppliers and local dealers.

EV Ecosystem Push (Malaysia): Malaysia’s investment and industry minister says EV growth needs more than sales—local tech, skills and faster public charging are key, pointing to Proton’s PHEV production and high localisation that supports SME component makers. MSME Scaling (Malaysia): Malaysia reports MSMEs grew 5.7% in 2025 to nearly RM690bn and now make up 39.7% of GDP, but the big gap is scaling up and reaching global markets. Digital Trade for SMEs (Vietnam): Vietnam’s trade promotion agency is expanding cooperation to help SMEs use AI and digital tools for export, with plans for digital trade platforms, data portals and SME training. Payments + CBDC Rails (South Korea): Toss Payments is set to connect South Korea’s deposit-token network to merchant checkout systems for small businesses, aiming to avoid terminal replacements while extending central bank digital currency infrastructure into everyday commerce. SME Relief via ADB (Cambodia): The ADB approved a $250m loan to protect vulnerable households and support economic stabilisation, alongside a wider $450m package for Cambodia and Sri Lanka. Entrepreneurship Pressure (South Africa): A new GEM report says South Africa’s entrepreneurship support environment lags global peers, with a low national context score and persistent hurdles around finance and regulation. Customs Compliance for Cross-Border Sellers (US-China): A compliance framework targets Amazon FBA importers facing 2026 tariff and customs scrutiny, focusing on clearance, classification and CBP requirements. Made-in-USA Search Scrutiny (US retail tech): A study alleges Amazon and Walmart’s AI shopping agents suppress “Made in USA” results, raising new questions for sellers trying to market origin claims.

SME IPO Watch (India): Silverstorm Parks and Resorts raised ₹82.43 crore on the BSE SME platform, with demand led by NIIs (2.62x) and QIBs (1.81x), while retail saw 1.41x subscription. Edtech IPO Pipeline (India): Fusion Klassroom Edutech pulled in ₹11.08 crore from anchor investors ahead of its ₹39.04-crore SME IPO, opening July 31 and targeting BSE SME listing on Aug 7. Credit Stress Signals (India): A TransUnion CIBIL study warns over-leveraged borrowers rose to 18% in FY24 (then eased to 15% in FY26), while credit-active growth and new-to-credit inflows are slowing—raising the bar for SME and retail lending. Trade & Carbon Rules (India–EU): India’s commerce officials say the India–EU pact includes a work plan to manage CBAM carbon-tax concerns, with specific provisions aimed at easing SME compliance and verification burdens. Digital Commerce Push (India): Government plans Rs 277 crore to onboard 5 lakh MSMEs onto ONDC by 2027, with women expected to make up 50% of beneficiaries. Cross-Border Payments (Cambodia/ASEAN): Cambodia expanded bilateral QR links with Lao PDR, Malaysia, Singapore, Thailand and Vietnam via Bakong and KHQR—aiming to make payments easier for merchants and small businesses. Regulation Update (Korea): South Korea tightened bottled spring water storage rules: keep indoors away from direct sunlight and cap shelf life at two years to reduce container leaching risks. Local Business Support (Philippines): President Marcos faced pressure over high electricity rates, with calls to amend power rules that pass system loss charges to consumers. Workspaces for Youth (India): Andhra Pradesh’s SS Hub co-working plan (Rs 10 crore) targets lower setup costs and keeps skilled youth closer to home through subsidised shared work access.

SME Trade Readiness: India-EU FTA details a dedicated CBAM annexure and work plan to help MSME exporters handle EU carbon-tax verification, embedded-carbon calculations, and recognition of Indian verifiers—plus a path to engage on carbon prices as India builds its own scheme. AI Infrastructure Push: The EU launches “AI Gigafactories” with up to €11.5bn public funding to unlock affordable high-performance computing for start-ups, academia and public bodies. Local Livelihoods via Micro-Mobility: Chinese-made electric tricycles are boosting small business delivery in Cape Verde, cutting fuel costs and helping residents reach markets faster. Cleanup and Small-Business Focus: Los Angeles County keeps community outreach and updates running as remediation continues after the East LA oil spill, with attention on public health and affected residents and small businesses. SME Digital Enablement: Nedbank’s SimplyBiz wins a global award for SME support beyond banking, highlighting coaching, tools and market access. Maritime Startup Acceleration: IIT Madras incubated Dtyle.AI is selected for Singapore’s PIER71 Smart Port Challenge 2026 accelerator, aiming for safety-first AI pilots in ports.

SME Policy Watch (Philippines): In his penultimate Sona, President Ferdinand Marcos Jr. flagged household pressure from food, power and transport costs, with fuel price hikes feeding into broader prices; one proposal would lift the annual tax-exempt income threshold to P350,000 from P250,000. Trade & Tariffs (US): A US Senate push to expand Trump’s tariff powers could allow up to 500% tariffs on Russian imports, raising sourcing and pricing uncertainty for firms across Asia-linked supply chains. Startup Funding (Australia/NZ): Eight startups raised $102m in a fortnight, led by New Zealand auto software firm Partly with $71.5m. Digital Payments & MSMEs (India): Tata Communications is pitching “AI in a Sachet” and using Google Duplex-style tools to help small and medium businesses reach customers and automate outreach. Local Business Risk (Australia): Lawmakers and community groups are pressing for tougher action against Australia’s illicit tobacco trade after raids and alleged arson hit small retailers. AI Skills Gap (World Bank): The World Bank warns countries like Nigeria and India risk missing the AI-driven industrial shift unless they adapt AI to local realities.

AI for SMBs in India: Tata Communications and Tata Tele Business Services (TTBS) unveiled an integrated AI platform for small and medium businesses, pitching “ready-to-use” automation instead of model-building, with voice agents positioned as digital workers. Tax relief for workers (Philippines): Marcos’ proposal to raise the personal income tax exemption is expected to benefit 3.13M workers (including 1.2M minimum wage earners), with revenue losses estimated up to ₱60B plus ₱6B from micro and small enterprise exemptions. Public sector bank health (India): India’s government says state-run banks have improved profits and cut bad debt to multi-decade lows, citing credit growth and support schemes like ECLGS. SME IPO momentum (India): Poojaa Precision Engg. launched an SME IPO priced at ₹285–₹301, already subscribed nearly 20x by late Day 2. Tariffs hit small firms (US): New lawsuits from small businesses challenge Trump’s Section 301 forced-labor tariffs, arguing the government didn’t properly justify or explain the measures. Climate risk financing (Pakistan): A push for parametric heat insurance highlights the need for pre-arranged payouts as heatwaves become predictable economic shocks.