A statement of intent between ABAC Indonesia, the country’s name for APEC Business Advisory Council and UNDP has been signed in New York on September 30. The agreement seeks to accelerate financial inclusion for SMEs through the creation of ABAC Indonesia Impact Fund (AIF).

“The partnership that we have between ABAC Indonesia and UNDP aims to support the achievement of continuous programme in Indonesia to provide access to social investment or impact fund for SMEs, in line with the SDG, or Sustainable Development Goals,” said Shinta W. Kamdani, who represent as member of ABAC Indonesia signing the statement of intent.

Kamdani signed the agreement alongside NDP Acting Regional Director for Regional Bureau for Asia and the Pacific (RBAP), Valerie Cliff on “Leveraging Blended Finance for the Sustainable Development Goal” event last Friday, September 27 in United Nation General Assembly, New York.

The event was organized by UNPD jointly with the Government of Indonesia, the Government of Canada and the Government of Jamaica, as well as Tri Hita Kirana Forum for Sustainable Development

The event highlights the crucial role blended finance mechanisms play in financing the SDGs. It draws on the commitment and experiences of these countries and discusses methods to attract private capital towards achieving the SDGs — which could be applied to other countries.

Also Read: Singapore’s data protection framework gets a boost with new appointment, initiative

Present to witness the signing are Coordinator of Maritime Ministry Luhut Binsar Panjaitan, Head of UNDP Achim Steiner, as well as the representative of international regional and multilateral organisations.

The initiation of the impact fund, Kamdani noted, is the first of its kind in Indonesia. “We hope that the arranged structure can attract more investors to contribute for the development of SMEs and SDGs, and to also take into consideration not only the financial sustainability, but also the measurement of social impact with numbers to give the right and impactful decision,” Kamdani added.

Head of UNDP Achim Steiner also expressed the importance of having a domestic and international financial ecosystem through an innovative partnership between public and private, including the blended finance scheme and impact fund to increase the number of funding needed for SDG and leave no one behind.

“Blended finance can unleash much-needed opportunities to fill the massive gap of global funding in achieving the Sustainable Development Goals (SDGs), but faster actions to harness the financing are needed to meet the development agenda, the head of the United Nations Development Programme (UNDP).”

Also Read: In a recent APEC workshop, we learned that SMEs must learn to “survive” digital attacks

“The real issue is that the global financial system is not channeling financial flows effectively towards investments for sustainable development. Reorienting even a fraction of the global stock of financial assets would accelerate sustainable development. That requires creating domestic and international financial ecosystems that accelerate the deployment of public and private finance including through innovative partnerships and finance instruments,” said Steiner.

Furthermore, the partnership will see ABAC Indonesia and UNDP focusses on identifying potential SMEs and UNDP’s support in developing ABAC Impact Fund-backed SMEs, encourage inclusive finance for small and medium enterprises.

ABAC Indonesia Impact Fund uses blended finance – combining public, private, and philanthropic funds – to support impact ventures and SDGs in Indonesia.

ABAC Indonesia will provide guidance on the local investment ecosystem and facilitate the mobilisation of seed funding, up to US$5 million, as First Loss Capital, to attract further investors and encourage the capitalisation of the Fund. UNDP will provide technical assistance to identify and evaluate potential impact ventures, using the IMM (Impact Measurement Management) parameters.

UNDP is working alongside governments and other stakeholders to raise awareness, build institutional capacity and increase understanding of the gaps and opportunities in financing the SDGs.

In Indonesia, UNDP has established the Innovative Financing Lab as a collaborative space, bringing all stakeholders from the government, investors, entrepreneurs, religious organisations, financial institutions, and development partners to leverage new finance for the SDGs.

Under the Lab, UNDP has supported the successful issuance by the Government of Indonesia of the first Green Sukuk with a total amount of US$2 billion.

UNDP has also tested blended finance instruments with Islamic charity funds, resources from a state-owned Bank and GEF funding to give access to energy bank to poor community in remote areas, which are currently being scaled up.
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Terra Capital, Bangkok-headquartered investment firm, announces that Singapore-based Dr. Reckendorfer & Partners, has acquired a minority stake in Terra Capital in order to support the firm and its current investment portfolio in reaching their expansion and revenue goals.

Dr. Reckendorfer & Partners has seven worldwide offices in addition to Singapore, whichare located in Bangkok, Hong Kong, Kaohsiung, Belgrade, Limassol, and Vienna.

Terra Capital CEO Stefan Gunnarsson commented, “The acquisition of a minority stake in Terra Capital by Dr. Reckendorfer & Partners validates the strength of our portfolio and gives us the backing of a firm with a global network and valuable local insights in Asia and Europe. We are scaling the companies in our portfolio across the region.”

“We view the partnership with Terra Capital as an ideal symbiosis of two companies involved in innovative business models and technologies,” said Dr. Reckendorfer & Partners Chairman Dr. Wolfgang Reckendorfer.

Terra Capital CEO and founder Stefan Gunnarsson established Terra Capital in 2017 for early stage investments in Southeast Asia.

Also Read: Online cashback platform RebateMango acquires Thai rival DeeDee Cashback

Over the past three years, Terra Capital has invested US$2 million in total in eleven startups in pre-seed and early stage rounds. The firm aimed to invest US$5 million within the next twelve months.

Terra Capital’s notable additions to its portfolio include Singapore-headquartered online property rental marketplace Flat Monthly, Vizoport; Asia-based producer of 3D immersive content, and JobExpress, a recruitment startup that seeks to minimise operating costs.

Being onboard, Dr. Reckendorfer & Partners said it provides strategic, investment, business development, and operational services to create and accelerate establishment of businesses in Asia and Europe.

Dr. Reckendorfer & Partners, or DR&P, is an international and interdisciplinary consultancy company, specialisung in representing European high tech companies in the Asia Pacific (APAC) region.
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Picture Credit: unsplash.com/@jarvisphoto

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Being perfect isn’t cool anymore

Pastel-perfect colours, bright facades, and smashed avocado toast – hallmarks of the Instagram trend were all the rage back in 2017. Then something happened. 

People got tired of it.

Consumers, especially millennials and Gen Z, are becoming increasingly sceptical towards influencers and their hyper-curated content. 

A study by media agency UM found that internet users are becoming more distrustful of social media content with only 8 per cent believing most information on social media. When it comes to content provided by influencers, this number declines even further to 4 per cent.

Engagement rates are also down. As seen in the chart below, influencer sponsored post engagement rates have declined 40 per cent from 2016 to 2019 – hitting an all-time low of 2.4 per cent in 1Q19.

Show me something real

Unglam is in

To their credit, some influencers have begun adapting to the new climate. Trends like “Instagram vs. reality” have gained traction as people poke fun at themselves in an effort to become more relatable and authentic.

Zero One Partners has been granted permission to feature photos by Rianne Meijer 

Source: https://www.instagram.com/p/BzGbpdfIUY4/?utm_source=ig_embed

 

Apps like Tiktok that celebrate the embarrassing and cringe-worthy have also shown astronomical growth – recently crossing 500 million monthly users. 

Compared to Instagram’s neat and carefully crafted aesthetic, Tiktok users upload videos of themselves lip-syncing, dancing, and making fools of themselves (Jimmy Fallon convinced people to roll around like tumbleweeds on Tiktok).

The rise of more authentic micro-influencers

Distrust towards artificial, perfectly curated content has also spurred the rise of another kind of influencer – friends, family, and people from shared interest groups. 

After all, given how easy it is to spoof follower numbers across social media and how many people have now become essentially shills for products online, it’s much easier to trust someone you already know or someone who has to maintain some sense of credibility within a shared community group.

Anyone can be an influencer for as little as $12.95! Photo from idigic.net

 

Consumers today are smarter than ever and winning their trust is all about presenting authenticity. Just look at the American beauty startup Glossier, who has achieved massive success with Millenials by doing just this. 

“Beauty inspired by real-life,” says the Glossier website the moment you arrive. One scroll down the page you see “Real people share their real-life routines”. Then in the “Glossier in real life” section, the company showcases the Instagram posts of real customers using their products (many of whom have less than 1000 followers). 

Everyone knows a model with perfect photo editing will look good in makeup, but what about real people? What about imperfect me? This has proven far more compelling content than purchased mega-influencer posts or professional photos of perfect models.

Screenshot from https://www.glossier.com/shop-the-look

Glossier is killing it by tapping its customers as authentic micro-influencers; started in 2014 the company has already achieved a reported market valuation of US$1.2 billion and is outcompeting far more well-established brands.

Leveraging micro-influencers isn’t just a developed market trend either. In India, the Y-Combinator and Sequoia-backed social commerce startup Meesho leverage its users as micro-influencers to resell products into their social circles via mobile phone chats.

 

Think of it as an Avon or Tupperware business model built for the smartphone generation.

Meesho takes care of all the backend including product sourcing and inventory management, allowing anyone to easily resell products via Whatsapp or Facebook Messenger with a higher conversion rate because they are selling to people they know, rather than being mega-celebrities blasting out paid posts to an audience of complete strangers.

With social blending into commerce, authenticity & trust have never been more important 

Social is commerce

It’s tough to predict the future of any industry, but from how social and commerce have been intersecting over the past few years, it seems all but inevitable for the two to blend into one another.

Since 2018, social media companies have begun launching commerce-related initiatives in earnest. 

Facebook launched its marketplace feature in Singapore last year, while Instagram has begun rolling out its new shopping & checkout features. Messaging app LINE also just announced their plans to build a new e-commerce platform offering an assortment of products from 15 major marketplaces.

In turn, e-commerce companies have also become more social.

In 2017, Amazon launched a social network-like featured called “Amazon Spark” where Prime users could share pictures of their latest purchases allowing customers to discover new products. While Amazon eventually shut down this feature, the Company has incorporated what they learned into #FountItOnAmazon, which is still active.

Alibaba Group’s Taobao app is also blurring the lines between e-commerce and social through its live streaming feature. Thousands of merchants showcase their products over the video while answering questions and offering advice in real-time. Merchants host their products in the stream allowing customers to seamlessly purchase products while never leaving the video.

User-generated content: higher content authenticity = higher impact

With every social interaction increasingly becoming an opportunity for brand awareness, advertisers need to learn how to adjust their marketing strategies.

According to statistics from Stackla, 90 per cent of consumers finds authenticity to be important when deciding which brands to support with individuals being 2.4x more likely to find user-generated content (“UGC”) authentic compared to brand-created content. 

The perceived authenticity has led to consumers finding UGC to be 9.8x more impactful than influencer content, and 6.1x more effective than a brand’s own content.

Chart from Stackla – Bridging the Gap: Consumer & Marketer Perspectives on Content in the Digital Age

 

Already, many firms across the world have leveraged the power of UGC to great success.

Xiaohongshu (小红书), a Chinese startup founded in 2013, has seen rapid growth thanks to its engaged community and a plethora of recommendation-focused features. 

Compared to other shopping apps, Xiaohongshu doesn’t allow one-click ratings or anonymous reviews. Instead, the app is known for 笔记 or “Notes” – extensive product feedback often accompanied by images & videos – which has lent a higher level of credibility to products on its platform.

Screenshots from Xiaohongshu’s mobile app

 

This has, in turn, led to higher conversion rates. According to Econsultancy, 8 per cent of users makes orders on the Xiaohongshu app after reading reviews vs. 2.6 per cent on Tmall (China’s largest marketplace for brands).

Many firms in the US have also begun leveraging UGC. 

Thanks to Yotpo, a New York-headquartered startup, it’s easier than ever for brands to leverage user-generated content in their marketing. 

Yotpo collects user-generated content (such as social media posts, reviews, and photos) and allows companies to embed the UGC everywhere across the web – from home pages, social media platforms and also e-commerce sites. Companies such as GoPro, Steve Madden, and Everlast leverage Yotpo to augment their UGC marketing campaigns.

Intuitively, the success of user-generated content makes sense. From relying on stock images, then influencers, and now micro-influencer or consumer-produced UGC, there has been a continuous push by consumers for more transparent and authentic content – things we can more easily trust. 

The now mature TripAdvisor has shown us the success of leveraging this for years, actually, providing us user-snapped pictures of actual hotel rooms to trump the perfectly-edited photos every hotel tries to sell us.

So while “cool” picture-perfect posts may momentarily capture our eyeballs, these days consumers are more suspicious than ever that influencers are bought or content is heavily edited.

To paraphrase Kendrick Lamar from his hit song Humble: “We’re so sick and tired of the photoshop… show us somethin’ natural like stretchmarks”.

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“The jail cells in Singapore are not bad, food is quite good, too,” quipped an entrepreneur when we sought his comment on the new ‘fake news law’, enacted by one of the world’s wealthiest countries.

Singapore’s new fake news law, or the ‘Protection from Online Falsehoods and Manipulation Act’ or POFMA, came into effect on October 2. The law gives government ministers powers to order social media sites to put warnings next to posts authorities deem to be false. In extreme cases, ministers can order to take a news item down.

Yes, a law to curb fake news is a good step in the right direction. But the moot question is who discerns what fake news is? Will it serve the purpose? And what will be its repercussions?

“There are good intentions behind this new law, taking into account the importance of multiculturalism, strength in unity and international relations,” believes Roshni Mahtani, CEO, Tickled Media, which owns media sites theAsianparent.com and AsianMoneyGuide.com .

“Time will tell if there are repercussions on the dynamic digital media ecosystem in Singapore. For now, it encourages accountability and a responsible media presence,” she says.

“I think this is a good and bold step in the right direction. No other countries have taken such a step yet,” Adrian Liew, CEO, Beknown, a reputation management company, agrees.

“When fake news is identified, it is important to stop its spreading as soon as possible to protect the public interest. I read in papers that some fake news in India had caused panic among the public and that led to lynching. My only concern is how the government will execute this law in Singapore, or will it be seen as a way to stifle dissent. A tool is a tool and must be used in a manner for the public good,” Liew added.

Also Read: The world should wish the Singapore fake news law is Fake News

Logan Tan, Founder and CEO of Eezee, another local startup, can’t agree more. “In my opinion, the fake news law, although controversial, is a necessary step to protect the people. As the era of digitisation comes into full effect, information is spread across fast and vast. Platform owners have the responsibility to regulate and control the information being posted on their respective platforms.”

“Ultimately, the law is just a tool. It still boils down to how the authorities exercise this right. If used properly, I believe there will be greater benefits than there is zero regulation,” Tan added.

Several others view the fake law from a different angle. For them, this is not a regulation or technology problem, but a societal problem. “People are just too addicted to having everything served to them fast and easy, to the detriment of society,” says a digital media entrepreneur. “I think the only way to eradicate fake news is by investing our energy in learning to be better critical thinkers. I feel the ‘fake news law’ is just another knee-jerk reaction.”

For several others, POFMA is fair if used with the explicit intention of preventing falsehood from spreading. “However, it would not be fair if the laws are used to stifle controversial debates or dissent,” says a guest contributor of e27. “But this has been clarified publicly by various representatives of the Singapore government that POFMA focuses only on falsehoods of news.”

“Speaking in a context as a guest contributor on e27, it ensures that the articles I write should be double-checked for facts, and the information should be obtained from credible sources. This is an ethical code of conduct of journalism, which I am already adhering to. As long as I follow these guidelines, I would not worry about breaching POFMA,” the contributor said.

But not all founders we spoke to subscribe to this view. “The law sucks,” says one. “What if some news stories are real, but the government refuses to acknowledge them?”

He has raised an important question: How will the government decide a piece of news is fake or not?

“It will be more effective if online voting is conducted to verify and establish the authenticity of certain content,” suggests Bandanjot Singh, Product Manager with a local startup. “This can also be done via crowdsourcing from the members of social media, rather than the authorities mark a news item fake. This will remove the bias. There is always a risk factor that certain content may be marked fake and removed from the sites if it doesn’t match government views.”

“That’s a terrific idea, but what if the votes are also biased,” asks another founder. “Let’s take the Cambridge Analytics issue. Enough of misinformation. Here, the voter can also vote knowingly in favour of the perpetrator. My point is that the crowd is not a good judge, either.”

There is already a law in Singapore, the Computer Abuse Act, top executive of a startup points out. This law is to penalise the fabrication and spreading of falsehood. However, the new law is specific to online and falsehood.

“Singapore’s government doesn’t need new laws to force action on the part of publishers — it’s always been able to silence its critics through legal action. POFMA presents a dangerous precedent by empowering ministers to issue directives, instead of the courts,” argues Alan Soon, Co-founder and CEO, of Splice Media.

“The fake news problem is a media literacy problem. Not a government policy problem or a technology problem,” another one opines.

Agrees another founder: “Misinformation has been around since long. Until recently, with the amplification of social media and instant messaging apps, it became a serious problem. The solution is well, be smarter. It’s not something tech, or government policies can fix,” he quipped.

Image Credit: Elijah O’Donnell on Unsplash

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What do you think of the Singapore government’s new law? Please post your comments below.   

 

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Malaysia threatens to fine grab US$21M – Bloomberg

The Malaysia Competition Commission announced that it could impose an MYR86.8 million (US$21 million) fine against ride-hailing giant Grab, Bloomberg wrote.

According to the report, the regulator provisionally found that Grab prevented drivers from providing ad services for its peers during rides, distorting competition in the market.

The investigation itself has started in 2018, as a response to multiple complaints accusing Grab of monopolistic practices, following its acquisition of Uber in Southeast Asian.

In a press statement, Grab said that it was “surprised” by the proposed decision.

“We believe that it is common practice for businesses to decide upon the availability and type of third-party advertising on their respective platforms,” wrote a spokesperson.

Hillstone Networks conducts IPO in Shanghai – Press Release

Vickers Venture Partners today announced that its portfolio company Hillstone Networks has been listed on the Shanghai Stock Exchange’s sci-tech innovation board (STAR market) as of 30 September 2019.

The Silicon Valley-based network security solutions provider raised CNY949 million (US$132 million) from the IPO. Its stock price also rose by 112 per cent after the first day of trading, with a market cap of CNY8.1 billion (US$1.1 billion).

“Network security plays a critical role in China, especially in cloud computing, 5G development and IoT. Back in 2009 when we were looking to opportunities to invest in the field, Hillstone stood out as a startup with the best technology and most experienced team. We are delighted to be one of the early backers of the company and supporting their growth to this day. Listing on STAR is a major milestone for Hillstone as it recognises the quality of its solutions, in addition to cementing its market-leading position,” said Linda Li, Vickers Venture Partners’ Managing Director.

Also Read: Today’s top tech news: Grab faces anti-monopoly investigation from Malaysia

President Barack Obama to speak at The Growth Faculty – Press Release

President Barack Obama is set to speak at The Growth Faculty event in Singapore on December 16.

The former president will discuss his time in office and his thoughts on leadership in the world.

The Growth Faculty is a platform that provides business communities with access to speakers through events and online programmes in the areas of business, politics and personal development. Previous events presented by The Growth Faculty have featured Hillary Rodham Clinton, Malala Yousafzai, Indra Nooyi, Simon Sinek, Malcolm Gladwell, Jim Collins and George Clooney as headline speakers.

Bukalapak, Qiscus team up to launch chatbot on the online marketplace – DailySocial

Indonesian chatbot developer Qiscus announced a partnership with e-commerce giant Bukalapak to launch a chatbot service on the online marketplace platform, DailySocial wrote.

Through the partnership, Bukalapak expects to maximise server usage by four times, bandwidth use by 20 times, and be more cost-effective.

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