In a small heavy-bottomed pan, add palm sugar over medium-low heat and cook for about 2-3 minutes or until caramelized, stirring continuously.
Add the basil, fish sauce and water and stir to combine.
Remove from heat and transfer the sugar mixture into a large bowl.
Sprinkle each chicken breast with salt and black pepper.
Add the chicken pieces in the sugar mixture and coat generously.
Refrigerate to marinate for about 4-6 hours.
Grease the Air Fryer Basket with cooking spray and then slide inside.
Adjust the temperature of Air Fryer to 365 °F to preheat for 5 minutes.
Wrap each chicken piece with 3 bacon strips.
Coat each piece slightly with honey.
After preheating, arrange the chicken pieces into the greased Air Fryer Basket in a single layer.
Slide the basket into Air Fryer and set the time for 20 minutes.
While cooking, flip the chicken pieces once halfway through.
After cooking time is finished, remove the chicken pieces from Air Fryer and serve.