Digital marketing is a dynamic field that gets more sophisticated and advanced every year. It also puts a lot of pressure on us as agencies to adopt best practice strategies faster. The more we understand these changes, the better we can cater to our clients.

There are many things to be excited about for the new year, and here is a breakdown of our top few.

Brands will focus on leading with purpose and impact

Leading with purpose and impact is important because every organisation runs because of people. People, by nature, are driven by purpose.

According to Forbes, “52 per cent of purpose-driven companies experienced over 10 per cent growth compared with 42 per cent of non-purpose-driven companies, and this included growth in purpose-driven companies benefiting from greater global expansion (66 per cent compared with 48 per cent), more product launches (56 per cent compared with 33 per cent), and success in major transformation efforts (52 per cent compared with 16 per cent).”

The organisation’s purpose starts from the hiring process all the way to the business’s day-to-day operations. Employees are starting to introspect and soul-search more when reflecting on their purpose in life, especially after the COVID-19 pandemic. 

Work is also no longer a place to solely make profits. It is a place where positive social impact can be made. This brings us to ESG (environmental, social, and governance) principles which more and more companies are looking into. This could mean taking measures to produce positive social outcomes, such as making efforts to lower pollution and CO2 output and also reducing waste.

Also Read: “Consolidation and explosion”: SEA startup investors reveal 2023 trends they are keeping close watch of

It could also mean creating a diverse and inclusive, well-rounded workplace. As time-consuming and expensive philanthropy is for an organisation to undertake, it will create deeper connections both internally within the organisation and externally with customers, which will be rewarding for the business in the long run. 

More and more companies will start figuring out ways to help employees feel more fulfilled and supported both purposefully and impactfully because if they get this right, the potentials are endless.

How brands will onboard Web3, creating utility for NFTs, metaverse

I am excited to see how marketing strategies will innovate to adapt to Web3. I’ve seen a lot of luxury brands onboard the metaverse and showcasing their craftsmanship in creative ways, and it’s fun to see how Web3 will take shape.

Building more relevant and personalised content experiences for customers

Brands can issue NFTs for collectors to gain access to new product launches (aka “drops”) and physical entry to clubs, events, and shows. They can also personalise the entire funnel and create a unique experience for individual collectors since it is built on blockchain, a decentralised network. And as this is still in the infancy stage, the possibilities for brands to be creative are endless.

Creating scarcity

Brands can also create exclusivity through NFTs to target a new generation who are constantly seeking to boost their digital presence. This can be done via investing in digital clothing like avatars, skins, and gliders. Think about it, we are living in an era of material culture and identity, and digital identities are becoming more of an extension of oneself.

Fortnight made US$9 billion in revenue in its first two years. Roblox boasts a collective US$1.2 billion on their in-game currency, up 171 per cent from last year. The more embodied one feels in their avatar, the more likely they are willing to pay to improve their appearance in the virtual space.

What does this mean for brands? It all comes down to how they decide to converge tokens and Web3 to drive business goals.

Interacting with customers in the metaverse

Decentraland and Sandbox are currently the top two leading metaverse platforms, and big brands are already heavily investing in this space. Brands can buy real estate in the metaverse to greet and communicate with their customers in a shared virtual space, which brings about a new form of “direct-to-avatar” marketing. It is pretty exciting to see how brands can personalise experiences to interact with individual customers in the metaverse over time.

A shift from Web2 marketing strategies to community building

Community building has also become the foundation of Web3. It’s time for brands to inspire people to join and engage by creating an inclusive space where they ideate, contribute and make a difference for them to thrive in the Web3 space. 

There are many competing versions of what Web3 will look like for businesses when it’s riper, and only time will tell.

SEO voice search

Voice search technology has advanced over the years due to improvements in natural language processing. It is becoming more exciting because it represents a new way for people to search for and find information online.

With the increasing popularity of speakers and other voice-activated devices, more and more people are using voice search as their primary method of accessing information.

A survey by PwC found that 40 per cent of adults use voice assistants on their phones at least once a week. This shift presents a new set of challenges and opportunities for brands to look into so that they can reach potential customers.

Google reports that 27 per cent of the global online population is using voice search on mobile devices. So while it is still in its infancy, voice technology is getting to a point where it has become mainstream. 

Also Read: How to leverage personalised advertising in 2023

We’ve been carefully considering the advantages of ranking for voice search when it comes to SEO optimisation as part of our client’s digital marketing strategies. The goal is to gain a competitive edge because, soon enough, voice search will become more widely available, with a growing number of people using smart speakers, phones, and other devices featuring voice search capabilities.

The growth of AI and automation

Automation

Automation is evolving and becoming more and more sophisticated as it helps brands personalise their communication to audiences better while also improving on cross-channel integration. This will enable brands to deliver more seamless and cohesive experiences to customers while saving time with monotonous, mundane tasks.

Artificial Intelligence

Then comes artificial intelligence (AI), which essentially takes broad rules outlined by humans but determines its pathway. These include analysing customer data, predicting customer behaviour, and even automating certain marketing processes. 

Our agency has been using Jasper.ai over the past year for our first layer of generating content drafts, but recently we’ve been fiddling around with Elon Musk’s Chat GPT, and it is pretty amazing what AI has evolved into.

Its been trained to engage conversationally so you will be able to ask mathematical questions, code, create content and also summarise content, acknowledge errors, refute false assumptions, and more.

We need to start thinking about the potential of AI and how we use it to improve business strategies and marketing efforts. 

It is exciting to learn about new innovations and market trends, and I am looking forward to technological developments that can improve the way my agency operates.

As an entrepreneur, you always need to be readily available to pivot to new changes because the business environment will constantly evolve. Having a growth mindset is key because it will help my team stay agile and responsive in a constantly changing business environment.

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Wareflex, an on-demand warehousing platform in Vietnam, has closed an undisclosed pre-seed funding round with lead investor Genesia Ventures.

Existing backer Antler also participated, bringing the startup’s total raise to US$785,000.

The company will use the money to develop its technology platform and expand the team.

Wareflex simplifies the warehouse procurement process with a B2B marketplace, a business network of related products and services, and a SaaS supply chain tool to support clients in optimising their operations.

The firm provides flexible warehouses of all types on a pay-per-use basis. It has a network of over 100 warehouses across Vietnam, including general/ambient warehouses, cold storage, open yards, and e-commerce fulfilment centres.

Also Read: Vietnamese EV maker VinFast files for US IPO

On-demand warehousing platforms match companies with underutilised warehouse and distribution centre capabilities and customers needing extra space or expanding their distribution network. This new business model has unique advantages in terms of flexible capacity and commitment granularity but also has different cost structures compared to traditional ways of obtaining distribution capabilities.

Wareflex’s Co-Founder and CEO Rajnish Sharma said: “We believe the supply chain industry in Vietnam has an opportunity to improve in terms of standardisation, transparency, efficiency, and innovation. With that in mind, Wareflex is helping to improve the openness of the warehouse attributes, service pricing, and availability. Secondly, we increase the efficiency and utilisation of warehouses across Vietnam by facilitating the matchmaking process between supply and demand. And finally, we boost innovation by providing flexibility and agility to businesses to access warehouse services and build their distribution network effectively.”

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Nowhere else in the last few years has there been as unexpected and unprecedented growth as there has been in the e-commerce industry, which was significantly influenced by the COVID-19 crisis. Consumer behaviour has changed due to the pandemic, lockdown measures, and uncertain economic times, driving more people to shop online rather than in person.

As more people lost trust in traditional commerce, they became more attracted to the convenience of online shopping. In economies where e-commerce already plays a significant role, the share of online spending increased more between January 2018 and September 2021, according to a study by the International Monetary Fund. The pandemic accelerated the shift away from physical stores to online shopping by up to five years, according to IBM’s US Retail Index.

A Visa study found that 31 per cent of Singaporeans made their first-ever online purchases during the pandemic, purchasing items from websites or mobile applications. 52 per cent of those surveyed said they shop less frequently in physical stores, compared to 74 per cent of Singaporean consumers who shop more frequently online.

However, the effects are reversing as the world gradually recovers from the pandemic’s aftermath, despite predictions that the digital and e-commerce industries will continue to grow quickly.

Challenges affecting the growth of the e-commerce industry

As we gradually leave behind lockdowns and other restrictions, the transition from the digital economy to a more mature e-commerce landscape will begin. Retailers should be cautious and watch what they expect as more and more shoppers are turning away from online shopping and returning to traditional commerce.

While retailers can expect growth in sales, they should watch for overgrowth, as well as overestimation. Some companies, like Shopify, over-delivered on the anticipated growth in e-commerce, causing the company to have too many employees.

Also Read: How Graas aims to help brands evolve their e-commerce strategy

Fast-paced industries like e-commerce are fuelled by advertising and marketing efforts, which require significant capital for larger businesses. The fast-paced nature of these industries also demands constant vigilance from retailers, as digital marketing is becoming more competitive than ever.

In 2021, the e-commerce industry was predicted to account for 21 per cent of global retail sales by the end of this year, a small increase of about 10 per cent from five years ago.

Access to funding to maintain growth momentum in a fiercely competitive market or enter a new market is the biggest pain point for businesses. In fact, according to CBInsights, running out of funds accounts for 38 per cent of startup failures.

E-commerce businesses will probably need to access additional funding as a result of the global slowdown in the industry to expand or, in some cases, maintain their current level of revenue. But for many businesses, this is where the issue lies.

The gradual decline of traditional funding

Traditional funding methods are the most common way for businesses to raise money; in fact, this practice has become standard in the business world. Various traditional funding options exist, including bank loans, venture capital, and angel investors.

Of the numerous traditional funding options, bank loans are probably the most preferred because they enable borrowers to raise capital at typically low-interest rates without giving up company ownership.

However, getting a bank loan is more difficult than one might imagine. Banks and other financial institutions typically analyse the borrower’s risk before approving a loan. The amount of the loan itself varies based on factors such as how much income a business generates, its record of profitable operations, the level of risk involved in its operations, and its capacity to repay debt.

In other words, a business is more likely to receive a loan if its asset value is higher. This is done primarily to safeguard the banks so that, in the event of a default, the bank can recoup its losses by selling the borrower’s assets.

However, the biggest flaw is that these digital businesses, like e-commerce businesses, typically don’t have many assets. The risk and return of these high-volume businesses, which may have high revenues but low-profit margins, are difficult for banks to assess.

In addition to not having eligible assets to pledge as collateral for loans, bank loans are usually time-consuming to apply for, and loan repayments in fixed instalments can put pressure on their companies’ cash flow, both of which are things businesses will want to avoid during this time of financial uncertainty.

Also Read: GuavaPass co-founders’ new alternative lending startup Jenfi lands US$6.3M led by Monk’s Hill

Bank loans can provide businesses with considerable amounts of capital at low-interest rates without the need to sell ownership, but because of rigid repayment terms, they aren’t as accessible to every business. This suggests that acquiring funding will become a bigger challenge for e-commerce businesses because these businesses are labelled as high-risk.

A fresh approach

Running a business has become a little bit simpler thanks to the development of new technologies over the past few years.  The advancements in financial technology have made it possible for businesses to expand beyond the limits imposed by traditional funding methods, changing the way business is conducted and attracting a new breed of investors.

Alternative revenue-based finance companies, such as Jenfi, are now better positioned to meet the funding needs of these companies. They assess risk for digital businesses and also control how their funding is used.

This ensures the entire amount can only be used for growth on digital platforms such as Google, Facebook, Instagram, LinkedIn, and other digital platforms. By doing so, there is a controlled use of funds and the ability to funnel the funds into growth solutions.

Companies who choose alternative revenue-based solutions such as Jenfi benefit from more flexible target repayment plans than fixed instalment repayment plans. Jenfi’s application procedure is entirely online, and companies have secured funding in as little as 24 hours in rare circumstances. This type of alternative funding is far better than traditional financing, which might take months.

Charting the future for the e-commerce industry

By 2025, it was predicted that the e-commerce industry would expand at a rate of 16.23 per cent, with a market value of US$11.45 billion. While it’s clear that e-commerce businesses are prepared for future growth, it will come with its own set of challenges. As the industry experiences a global slowdown, traditional funding methods are inadequate to support the expansion of e-commerce businesses.

To tackle the challenges that lie ahead, companies in the e-commerce industry should begin utilising alternative modes of funding to optimise their growth. Alternative funding can play a significant role in the growth of the e-commerce industry. It could give these businesses the tools they need to deal with the challenging effects of a slowing global economy.

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Ant-backed Akulaku raises US$100M from Japan’s MUFG
The capital infusion counts as the second strategic investment closed by the Indonesia-based company this year, following the US$100M funding it raised from SCB at the start of this year.

Line Man Wongnai in talks to buy Foodpanda’s Thai unit
A Bloomberg report says that Foodpanda Thailand, owned by Delivery Hero SE, was previously valued at US$100M but the potential deal size may have been trimmed due to market headwinds.

Tencent chief blasts managers in fiery townhall: sources
Founder Pony Ma told employees many corruption issues had been discovered within the company and mismanagement was draining its vitality; Tencent reported a second straight quarterly revenue drop last month.

Hyphen Group secures US$22M in funding led by PCCW
The fintech firm concurrently announced that its CEO Sam Allen has stepped down; Headquartered in Hong Kong and Singapore, Hyphen has reached 8M+ monthly users and partnered with over 270 financial institutions.

Indonesian B2B construction startup BRIK said to finalise US$12M funding
It is in talks for pre-Series A round with AC Ventures, Accel, and B Capital; In July, BRIK raised US$3M from AC Ventures, Accel, and Alternate Ventures.

ALVA raises US$10M from Standard Chartered Indonesia
The capital will help ALVA, a subsidiary of IDX-listed Indika Energy, produce electric motorcycles to build sustainable practices within its supply chain systems.

Singaporean Alchemy Foodtech nets US$3M in extended bridge round
The investors include Thai President Foods, Pine Venture, Thai Union, Heritas, and SEEDS Capital; Alchemy Foodtech provides tasty, healthier food options that reduce the negative impact of excess carbs and sugar on people’s health.

Baidu expands driverless robotaxi service in Wuhan
Baidu’s vehicles are equipped with multi-layer technologies such as redundancy monitoring, remote driving, and a safety operation system; These mechanisms are backed by the firm’s over 32M kilometres of self-driving mileage.

Vietnamese on-demand warehousing platform Wareflex closes pre-seed round
Genesia Ventures and Antler are the investors; Wareflex has a network of over 100 warehouses across Vietnam and provides flexible warehouses of all types on a pay-per-use basis.

YouTrip’s 4 steps to ensure financial resilience during crisis
The payments startup’s CFO Weijern Lim also shares the company’s experience in applying for grants, an excellent alternative to VC funding for startups.

Climate conferences won’t save us: Sparking systems change that benefits us all
Everyone can and should play a part, there is a unique and valuable part each one can play in advancing the climate fight.

What is the future regulation of crypto?
Without the establishment of consistent international rules, customers’ assets cannot be protected, and the crypto asset industry cannot be further developed.

Anticipating 2023: What’s on our radar
As an entrepreneur, you must always be readily available to pivot to new changes because the business environment will constantly evolve.

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Alchemy Foodtech, a Singaporean startup aiming to reduce carbohydrates, sugar and GI (glycaemic index) of foods, has raised US$3 million in funding from public-listed Thai President Foods, Pine Venture Partners and Sour Sally Group investment arm Selera Kapital.

Existing investors Thai Union, Fuchsia Venture Capital, Heritas Capital, and SEEDS Capital also participated.

The new funds will continue to support Alchemy Foodtech’s next stage of development in markets locally and overseas. “With the funds raised, we can pursue our growth in China, support our new China office, and expand to other countries, including Thailand, Indonesia, Korea, Japan and the US through distributors and B2B partners,” said CEO Alan Phua.

Also Read: Thai Union invests in Singapore’s Alchemy Foodtech, VisVires New Protein from its US$30M fund

The global demand for healthier food options is growing as more than one in three adults is overweight, and one in ten adults lives with diabetes. Alchemy Foodtech addresses these issues by providing tasty, healthier food options that reduce the negative impact of excess carbs and sugar on people’s health.

The company has developed its patented Alchemy Fibre technology platform based on plant ingredients to replace sugars and carbs and reduce glycemic index while delivering great taste and texture.

The interest in carb and sugar reduction is growing, with many companies pledging to reduce sugar in their product offerings by 2030. With strong global demand, Alchemy Foodtech has collaborated with several MNCs on various products, including noodles, bread, cookies, ice creams, yoghurts, and beverages. It will launch some of these in H1 2023.

In 2018, Alchemy raised 7-figure funding in a pre-Series A round led by Heritas Capital and SEEDS Capital.

Alchemy was part of the first cohort of SPACE-F, the first food tech incubator and accelerator programme in Thailand.

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Indonesia-based digital signature and identity platform Privy is set to expand its business to Australia. The country will be the startup’s first destination following its US$48 million Series C funding round in November 2022.

The update was announced by Privy Co-Founder and CEO Marshall Pribadi in his LinkedIn post. “Thanks IA-CEPA ECP Katalis for supporting Privy’s expansion to Australia. Looking forward to working together with you guys!” he wrote on Tuesday (13/12).

DailySocial has reached out to Pribadi for comments, but he had not replied by the time of this article’s publication.

The expansion was made possible due to Privy’s partnership with the IA-CEPA ECP Katalis (Katalis). Katalis is a partnership programme to support stronger, sustainable, and inclusive bilateral trade and investment relations between Indonesia and Australia. The programme was set up based on the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) trade agreement valid from July 5, 2020.

Katalis is working with business players and the government to implement IA-CEPA, complementing existing development initiatives by Australia, presenting a bilateral, commercially oriented and social-gender-inclusive approach in its activities.

Also Read: Get Privy for secure digital ID solutions

The formation of IA-CEPA started with the background of Indonesia-Australia’s strategic trade partnership; it was aimed to create a framework for the two countries to dig the potential of bilateral economic collaboration, encouraging partnership between businesses, communities, and individuals.

This expansion plan was first mentioned by Pribadi when the company announced its Series C funding round in November 2022. The CEO said that the network and global experience of KKR & Co Inc., combined with the support of investors MDI Ventures, GGV Capital, and TMI, played a crucial role in the startup’s success.

“Privy is in the right position to innovate further with our offerings and capacity while building a stronger foundation for an international expansion,” he said.

This statement was supported by Louis Casey, Growth Technology Lead at KKR in Southeast Asia. He said, “Privy had built a leading platform in the industry by combining main features, user-friendly design, and a strong and stable infrastructure. We want to tap into KKR’s global network and operational expertise to bring Privy to its next level of growth and expand its leadership in digital trust for leading individuals and corporations in Indonesia and beyond.”

Privy’s milestones

Founded in 2016, Privy offers a wide range of products that include digital identities, signatures, verification, and document management services in various sectors, from financial services, to health, to education.

In its development in 2018, Privy was the first non-government institution in Indonesia to receive the Certification of Authority (CA) from the Ministry of Communications and Informatics. A year later, it became the first e-KYC service provider to be listed on the Financial Services Authority.

Privy claimed to lead the market for digital trust platforms in Indonesia with more than 30 million verified users and 1,800 customers for its digital signatures, verification, and subscription services and onboarded more than 40 million signatures each year.

According to Statista, the global market for digital identity platforms is projected to grow from US$23.3 billion in 2020 to US$49.5 billion in 2026. Increased identity theft cases, data leaks, and new government regulations trigger this rapid growth.

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The article was written in Bahasa Indonesia by Marsya Nabila for DailySocial. English translation and editing by e27.

Image Credit: Privy

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We all know that the NFT is the next big thing and has many forward-looking potentials and utilities. As you find more NFTs trading in different marketplaces, you start to wonder what you should do next: “to buy or not buy”.

Here are six NFT trading mistakes to avoid for newbies.

Not promoting your NFT

After buying the NFT that you like, that NFT is yours. Most people have this mentality that the creator should be promoting, and as holders of the NFT, let’s sit back to watch the prices grow.

I’m afraid that’s not right. If you promote your copy of NFT, your unique NFT could be the one that gets sold the fastest. Always remember you control your assets. There is no need to wait for the creator.

Flipping it too fast

In the bull market, you have heard from NFT experts that they flipped their NFT 100X in an hour for millions of dollars.

Yes, this is possible back then. Right now, at this bearish market, you need to think long-term. You bought something that you feel has good value and potential. You bought a low price, and you do not mind keeping it. This kind of mentality will bring you far. “Good things take time”- remember this.

Buying it on the wrong marketplace

There are many NFT marketplaces in the space right now. Some of them are more controlled; They filter what can be listed and remove items that are unsuitable, not authentic or with copyright issues. While some are more open, adopting an “anyone can list” model, they have minimum supervision, and anyone can list almost anything on their platform.

If you choose the latter, you could be buying a fake and when you realise that, you are too late. There is no one attending to your complaints. And yes, there is no refund too. Hence choose wisely.

Buying an NFT that you do not like it

This is a real example. I have friends flexing their apes and punks as profile pictures to show they are well-to-do. But the fact is they do not like them. One guy told me he wants the tiger more, and it is his good luck animal, but there isn’t a big blue chip tiger NFT project. So he bought the monkey.

Also Read: Busan Blockchain Week 2022: Trends shaping the future of NFT

My sincere advice is to buy something you like, not just for the value. Last month, I purchased an NFT at US$0.01 from the Bybit NFT marketplace. It is affordable, has potential, and most importantly, I like the colours, and I am keeping it. This is how it should be. There is no stress about it.

Not using the right tools

There are many groups out there who are giving you tips on which one to buy. You can take their advice, but I suggest you research before agreeing and committing to your first NFT.

Many NFT tools in the market right now help you with your decision. For instance, some tools allow you to check on the rarity types. Some tools will enable you to analyse the volume and tell if any wash trading is involved. Stop guessing. Use the right tools!

Listening to the wrong consultants

NFT creators who listened to the wrong consultants are another common thing. They tend to hire the more expensive consultants thinking they know it all. Based on a survey I have conducted with corporations which have launched their NFT, they paid US$300,000 on average to the consultants to start the ball rolling.

I advise corporations and individuals to look online for resources before hiring consultants. I know of NFT studios who helped fellow creators by sharing their resources for free and helping them to list on platforms with zero cost.

One of the groups that I founded in 2006 is doing just that. They groom NFT rising stars, front the NFTs for them and do not ask a single cent from the creators. I think the spirit of sharing is essential, and they did it all correctly.

I am not here to put up any sale propositions. I want to see more people entering the NFT market with ease. And that is why I launched my book “NFT: From Zero to Hero by Anndy Lian” in August.

An NFT or non-fungible token is a unique digital identifier recorded in a blockchain and used to certify authenticity and ownership. Remember the above. It is not a profile picture or just another speculative product. The real value is in its utility. Do not make this mistake as well.

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In the previous two editions of this three-part series, I’ve outlined the climate actions that businesses can take right now to decarbonise and identified some ways to develop/increase the adoption of existing solutions to aid industry transitions toward net zero.

In this final part, I’ll propose actions that can be taken to instigate a systematic shift on a larger scale.

Collaborating at scale

It’s generally recognised that no single player can solve a challenge this big on their own. We need more than just cleaner solutions or alternatives – we need to change entire supply chains and economic systems so that we can continue to pursue progress and enable human development (which consumes energy and materials) while respecting planetary boundaries.

To arrive at the technical, political, economic, behavioural, and natural solutions required, collaboration is absolutely key.

What does meaningful collaboration look like, though, beyond signing industry-wide commitments and joining consortiums? Who should play what role, so we make the most of everyone’s unique strengths without wasting effort or resources? And is this even something to consider if you’re not an influential player?

Also Read: Climate conferences won’t save us: How to start taking action all year round (Part 1)

Spoiler alert: Everyone can and should play a part. Both multi-billion dollar businesses and small enterprises, CEOs and employees, policymakers from large and small nations alike – there is a unique and valuable part each one can play in advancing the climate fight.

• Solutions that reduce emissions need to move beyond just selling themselves towards building or being part of total solutions. Your product alone rarely covers the full picture for your client; understand the bigger problem you help your customer solve, and partner with other solutions that make this easier, which will increase your conversion rates and set a model for others to follow because it increases industry adoption/transformation. For example, we helped one waste management company double its revenue and access corporate offtake agreements by partnering with a traceability solution. We paired up two solutions – one incentivising households to better clean and sort their waste, the other separating multi-layer packaging into its separate components for easier recycling – which strengthened recycling feedstock far better together than they did working separately.

• Large corporations have the purchasing power to influence suppliers, normalise higher environmental and social standards, and therefore drive switches to a sustainable supply chain at a scale that many smaller businesses cannot. As early adopters, they must send demand signals and be the tide that lifts all ships across their industry; it’s time to break from a CSR lens and integrate sustainability into the core business. For many parts of the process, there is no need to reinvent the wheel – reducing waste, weeding out inefficiencies, and embracing circular practices in the supply chain make a triple win for the environment, productivity, and the bottom line. 

• Small and medium enterprises with lower budgets or buy-in for green solutions can still make their needs (e.g. price thresholds, operational constraints) known and aggregate demand amongst similar peers. Though one business alone may be too small to be designed for, engaging green solutions as the archetype of SMEs in your sector can bring down the green premium and enable adoption amongst the smaller businesses which make up the majority of any industry.

• The public sector can create an enabling environment for innovation and investment by reducing uncertainty, ring-fencing risk, being inclusive by design, and knowing what role they play in the bigger picture. Laying out clear priorities, targets, and prices (on carbon, plastic, and other environmental externalities that need to be properly costed); funding and encouraging timeboxed experimentation in areas where opportunity is clear but little is known about the right path forward; de-risking nimble policy choices by involving the relevant stakeholders from design to delivery, getting the most informed inputs to maximise chances of success and community integration – all of these are relatively inexpensive, politically safe ways for governments to speed up instead of slow down change. Singapore excels at incentivising and de-risking innovation via Enterprise Singapore and EDB’s many funding schemes. At the same time, the small population generally prevents it from influencing world decisions with market volume, and it can lead the way through forward-thinking, flexible policymaking.

Also Read: Preference for green jobs is the “most exciting” climate tech development: Lightspeed

These are just some of the many ways different types of organisations can contribute to making an outsize impact on driving us to our goal. To lean into making these changes, we need more meaningful and intentional collaboration across the board that encourages learning and action taken on those lessons.

Projects may be started in siloes and decided in small groups to get momentum going, but as these take shape and begin to see results, we need to fight the urge to share only our successes. We must be open and share learnings about our failures, too; only when we look at the tasks ahead as a global drawing board, not a leaderboard, can we iterate effectively, deploy new investments into the right places, and truly progress toward our goals.

How do we move forward together?

The scale of the climate crisis can be overwhelming, and it might seem that any action short of becoming a climate startup is futile. Instead of looking for a silver bullet solution (which doesn’t exist), we need to embrace a portfolio approach that leverages each one’s strengths and helps one another bridge weaknesses.

There is plenty that we can do, individually and as entrepreneurs, to meet the Paris Agreement’s goals beyond the confines of the COP summit.

There are no more excuses to delay taking action. We know the goals, the tools are at hand, and there are enough energetic advocates to kickstart the process. The “why” is also clear: besides our moral and survival imperative, there are multiple advantages to becoming the sustainability leader in your respective industry, like becoming preferred suppliers to large organisations with climate commitments, accessing cheaper financing products, attracting better talent, and increasing consumer interest in responsible businesses.

So while governments decide on big-picture programmes to enable a global green transition, businesses and individuals in Southeast Asia do not need to wait for their go-ahead. We can do something immediately.

The only hurdle is our own willingness to translate our hopes for the future into actions today.

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In November 2022, the crypto asset exchange FTX collapsed in just five days due to mounting turmoil, causing many investors to lose vast assets.

The impact of the collapse of the world’s second-largest exchange was so significant that major crypto assets such as Bitcoin and Ethereum crashed across the board, and projects that had relied on FTX collapsed in a chain reaction. Including indirect ones, it is safe to assume that more than tens of billions of dollars are needed to cover the damage.

This collapse was as inevitable as Enron’s FTX cheated investors with massive accounting fraud (window dressing), engaged in insider trading, and faked the failure of many investments. The two companies also share the same shrewdness in donating money to the Republican and Democratic parties and suppressing the political side. The fact that both companies’ headquarters collapsed shortly after they entered the Japanese market is also oddly synchronised.

This type of incident is not unique to crypto assets. Still, it is based on traditional fraud techniques: accounting manipulation, improperly inflating corporate value, misappropriation of customer funds, etc., a combination of fraudulent activities before crypto assets.

How to prevent a recurrence

However, there are also circumstances specific to the crypto asset industry that led to the collapse of FTX. The regulation of crypto assets still needs to mature. Therefore, unlike the financial sector, which is heavily regulated, there is room for various circumvention measures and fraud.

Also Read: Light at the end of the crypto tunnel? How to come out stronger

For example, few countries have fully regulated insider trading of crypto assets. Since combined with the high degree of anonymity due to its technical nature, fraud is straightforward. Although it cannot be proven, insider trading has likely occurred on a significant number (or almost all) of crypto asset exchanges.

Insider trading does not damage the assets of the exchange but rather enhances them, except when it is an appropriation of customer assets; a major cause of the FTX collapse was the dramatic reduction in the capital due to the misappropriation of customer assets and the ensuing run on them. The core of preventing a recurrence is regulation related to the protection of client assets.

Notable Japanese regulations

In this respect, Japanese regulation is progressive. Japan has learned well from the typical failures in the crypto asset industry, such as the Mt.

First, as with securities and FX, customers’ crypto assets are supposed to be segregated and managed separately. CPAs regularly audit the segregation to ensure it is done correctly. In doing so, they also examine whether cold wallets and multisig are appropriately used. The segregated crypto assets will be used to refund investors in the event of an exchange failure (i.e., 100 per cent of the deposited funds are guaranteed to be returned).

In addition to this, Japan is also trying to lead the world in systematically regulating stablecoins. Although there is a common criticism in Japan that “Japan is too strictly regulated, making it difficult to launch a crypto-asset related business,” there is an opinion that this strict regulation and monitoring system has been learned from the past and that it has prevented significant incidents from occurring after the FTX bankruptcy.

The need for global regulation

However, even in Japan, the crypto assets of FTX JP’s customers remain frozen. Since FTX JP’s assets (as well as those of the bankrupt FTX and its affiliates) will be used to repay the FTX Group’s creditors (including its customers), it is not clear whether they will be returned to investors after the bankruptcy, even though they are segregated and managed separately.

Also Read: The future of blockchain technology goes beyond just cryptocurrency and NFTs

It is said that the reason for this is that FTX JP’s customers cannot be given priority for repayment. In other words, if the parent company is located outside of Japan, the assets of the Japanese subsidiary’s clients would not necessarily be protected in the event of the parent company’s bankruptcy.

Thus, there is a limit to considering only one country when considering regulation. FTX made a breakthrough because it operated in the Bahamas, with virtually no regulations. In the Bahamas, taxes are meagre, and there is no need to submit bookkeeping records to the authorities.

This scheme of setting up headquarters in a tax haven and establishing a company in the US or Japan as a subsidiary is often used in the crypto asset industry (as in other sectors). The subsidiary is subject to strict regulations in this case, but the parent company is not.

Therefore, no matter how much regulation is enforced in the country where the subsidiary is located, the risk of the parent company failing due to misuse of customer assets, as with FTX, cannot be eliminated.

To fundamentally solve this problem, it is imperative to create a global standard for regulation. Although many experts have pointed this out, the road to realisation is exceptionally long, as it takes work to reach a worldwide consensus.

However, without international emphasis and the establishment of reasonable and consistent international rules, customers’ assets cannot be protected, and the crypto asset industry cannot be further developed.

It is not that the blockchain side is not responding to anything either; there are already blockchains like Concordium, which performs full KYC and can identify individuals in case of illegal activities while typically remaining anonymous; Concordium has stated that it will be improved in response to regulations.

The idea is to change the blockchain following international regulatory trends (many are willing to hard fork and many nodes understand this).

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