Web3 technologies, like blockchain, cryptocurrencies and the metaverse, are enabling a new decentralized internet and a new world of digital assets.

This will have a profound impact on the global financial ecosystem. Banks and insurance firms are already using blockchain technologies and smart contracts to monitor and audit financial activities, improving transparency, speed, and efficiency.

Investors are building diversified portfolios that mix traditional assets with crypto, stablecoins, NFTs and other virtual assets. Businesses are seeking to create new revenue streams by offering online content or services based on micropayment models.

However, some market players remain cautious. The collapse of FTX, once the second-largest cryptocurrency exchange in the world, over just a few days in November 2022, was a stark reminder of the volatility of the crypto market.

Even some web3 proponents have raised concerns about the security and stability of the industry and the potential for criminals to misuse virtual assets to launder money and fund illegal activities.

Stricter oversight will be necessary to ensure the ongoing stability of financial services in the web3 world. Greater regulatory clarity will also create the appropriate conditions for the industry to flourish through innovation.

Evolving the financial ecosystem

To ensure stability, governments and regulators worldwide are considering how to regulate cryptocurrencies and DeFi. Approaches vary across jurisdictions.

In Asia, Hong Kong is emerging as a global web3 hub. The Hong Kong Securities and Futures Commission introduced a new virtual-assets regime in May 2023 with the announcement of rules allowing retail trading of cryptocurrencies by licensed exchanges.

Like traditional financial institutions, these newly licensed platforms must meet strict requirements around safe custody, asset segregation and cybersecurity to protect investors and prevent money laundering. The Hong Kong Monetary Authority is also developing a framework for the regulation of stablecoin transactions and licensed stablecoin businesses.

The European Union is taking a similar approach. Its new Markets in Crypto Assets (MiCA) legislation establishes rules for stablecoins and exchanges across the region. The US, on the other hand, is looking to apply existing laws to digital assets.

Its Securities and Exchange Commission is currently seeking court rulings on whether cryptocurrencies can be classified as securities and regulated accordingly.

Incentivising innovation and investment

In every jurisdiction, regulatory clarity is welcomed by legitimate web3 companies. It provides a level playing field to help them innovate and create new products that solve real-world challenges. It also strengthens market confidence through rules that protect investors and consumers and provide peace of mind for those adopting digital assets.

Hong Kong’s regulatory stance aims to enable web3 innovators to build a thriving local ecosystem and flourish. Among the local startups poised for growth is a decentralized finance firm that provides loans to China’s cross-border e-commerce merchants.

Another web3 firm helps financial institutions use speech recognition for compliance, risk management and workflow automation. An innovative web3 company deploys big data to help companies and investors solve environmental, social and governance (ESG) challenges.

Other technology companies are working together to create a virtual assets hub that provides opportunities for web3 innovators to collaborate with one another, connect to sources of capital, access an exceptional talent pool, and build partnerships with traditional financial service leaders and other leading global enterprises.

Supporting enterprising web3 innovators

Hong Kong is home to more than 600 fintech firms and nine unicorns, and these numbers are increasing at pace. By June 2023, more than 150 new web3 firms have set up operations at Hong Kong Cyberport.

The city’s innovation hub had earlier received a US$7 million government investment to promote the development of web3 startups using blockchain technology.

In addition, the HKSAR government has set out its position to build a vibrant ecosystem in its policy statement last October and reiterated its commitment to promoting sustainable and responsible development of the city’s virtual asset sector, including its web3 ecosystem.

It further established a task force, chaired by the Financial Secretary, to promote web3 development last June.

Hong Kong Science and Technology Parks Corporation (HKSTP) is another key part of the local innovation ecosystem. It graduated a record 437 entrepreneurs from its incubation programmes in May 2023, with 61 per cent converted into Science Park companies for commercialization of their technology-driven business ideas.

HKSTP also saw the total company valuation of startups in its Acceleration Programme grow over 250 per cent from 2021-2022, with capital investment doubling over the same period.

These successes reflect Hong Kong’s growing importance as a web3 innovation hub in which entrepreneurs can seek resources, grow their networks, and capture business opportunities.

[1] For reference only: Qupital is the decentralised financing firm that provides loans to China’s cross-border e-commerce merchants. Fano Labs helps financial institutions use speech recognition for compliance, risk management and workflow automation. MioTech deploys big data to help companies and investors solve environmental, social and governance (ESG) challenges.

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Concerns have been raised about how far blockchain technology, the basis for crypto asset trading platforms, may be taken in the broader financial services industry.

The blockchain system has been called a “quiet revolutionary.” At its heart, it is a decentralised database that maintains a growing catalogue of data in the form of blocks. When it was first introduced, it facilitated the beginnings of decentralised finance by allowing crypto assets to be traded.

Although at first glance, blockchain and cryptocurrencies appear to be the same thing, blockchain has a far wider scope. Blockchain technology might be implemented to track commodities, provide digital IDs, and simplify information sharing.

While blockchain has become synonymous with digital currency, it is unclear if the technology is being exploited to its full potential across the financial services industry as a whole.

Putting the blockchain to use in the financial sector

The blockchain’s potential benefits are “slowly but surely” becoming apparent to the financial services industry. This is because blockchain’s role as a fraud protection for cryptocurrencies may appear very different from its use in traditional financial institutions.

Until open banking standards are fully implemented, and smart financial contracts are introduced as a mechanism to rectify the current impediments to adoption, legacy institutions will be able to begin implementing blockchain-based innovations. This is essential before blockchain’s full promise can be achieved.

Also Read: Decentralisation, AI, and blockchain: Crafting the future of civilization

The use of smart financial contracts to ensure uniformity would make it feasible to record legally binding obligations, such as those pertaining to a mortgage, on the blockchain so that they can be read and executed by computers.

The genuine financial potential that has been missing until now will be realised, and the established financial world will gain fresh stability as a result.

Traditional financial services may also stand to gain from blockchain technology. Asset tokenisation will become a useful tool for streamlining the issuing of securities and expanding participation in previously inaccessible asset classes.

Private equity is a prime example of the limited funding options available to private enterprises such as startups. The tokenisation of assets improves the liquidity of these enterprises by opening up new markets to them.

Challenges in scaling blockchain

While the potential for blockchain to be used in conventional financial institutions is obvious, it will require massive scaling if it is to be adopted.

However, challenges arise because of this. Energy consumption concerns have been raised in relation to the conventional Proof of Work (PoW) architecture used by Bitcoin and other crypto networks.

However, the Proof of Stake (PoS) mining approach, which consumes less energy, maybe the future for banks. Since making the conversion from PoW to PoS, Ethereum, a platform for trading cryptocurrencies, has seen a 99 per cent reduction in the amount of energy required to secure the network.

In order to meet anti-money-laundering and anti-fraud regulations at larger scales, blockchain systems will need to develop novel techniques to perform real-time analysis on many more transactions.

Blockchain’s bright future

Therefore, even though the road to widespread adoption of blockchain technology in conventional financial services is still a little bit unclear, the standardisation of blockchain-powered financial assets, such as CBDCs, is moving forward.

Any assets that do not embrace standardisation will be at risk of not complying with regulations as these regulations become more stringent. There is always the possibility of exceptions, but if a project’s goal is to be supported by significant financial players, then it will almost certainly take this approach.

When fully implemented, financial assets that are tokenised have the potential to bring about more liquidity as well as new kinds of financing for the entire economy.

The tokenisation of physical assets may one day represent a market worth multiple trillions of dollars. However, in order for blockchain technology and cryptocurrency to become the norm in the future, significant strides need to be made in the areas of regulatory harmonisation, standardisation, and technology.

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Malaysian energy giant PETRONAS has announced the top 25 startups from the Asia Pacific graduating from its technology accelerator programme, FutureTech 3.0, which was powered by StartupX.

The startups — operating across sustainability, the future of energy & mobility, industry & work, chemicals & materials, and frontier technology — have undergone 16 weeks of acceleration and mentorship. The programme serves as a platform for the energy group and its regional corporate partners to influence the tech-driven startup ecosystem by serving its business needs and creating a positive socio-economic impact for the community and the nation.

The PETRONAS FutureTech 3.0 Demo Day will happen in Kuala Lumpur on October 31.

Check out the 25 startups graduating from FutureTech:

A2Tech (Malaysia)

A2Tech specialises in building and developing robotics solutions, primarily focusing on inspection for dirty, difficult and dangerous jobs. It has developed three robotic systems for duct inspection and cleaning, tank inspection and cleaning, gas inspection and pipeline inspection using its differential mechanism mobile robotics technology.

Augmentus (Singapore)

Augmentus uses intelligent 3D scanning and AI robot motion planning systems to enable no-code robot programming in minutes. Its proprietary technologies enable rapid digitisation of the work environment, automated robot path generation, and an intuitive graphical interface that eliminates the need for coding and CAD files in robot teaching.

Beep (Singapore)

Beep builds common networks in fragmented ecosystems empowered by IoT to drive data interoperability and better user experiences. It claims to have helped power over 33 million transactions across thousands of touchpoints in five countries.

Also Read: Botsync’s automatic mobile robots want to lift APAC’s logistics sector to the next level

Botsync (Singapore)

Botsync builds heavy-duty autonomous mobile robots to help companies transition from manual operations to automation in less than a week. Its solution automates the movements of loads such as pallets, trolleys, cages, and custom structures across existing factory floors and warehouses with minimal changes to current infrastructure.

DiviGas (Australia)

DiviGas has invented a new process for manufacturing membranes (used for hydrogen recovery and purification). The membrane fibre developed by DiviGas can replace complex, energy-intensive, and toxic sorbent-based alternatives.

Enoku (Malaysia)

Enoku aims to bridge the gaps between persons with disabilities and employers. For persons with disabilities, it levels the playing field in employment to ensure everyone will receive the same opportunity and maximise their employment duration. For employers, it assists in reimagining their business strategy to eliminate systemic bias, spark broader social change, and create competitive advantage.

Entomal Biotech (Malaysia)

Entomal focuses on biowaste treatment and organic by-product upcycling by utilising the larvae of the black soldier fly. It was founded to create regenerative economics, also known as circular economy, a holistic solution for humanity’s crisis (food security, climate change).

Evfy (Singapore)

Evfy provides a 100 per cent electric van fleet, warehouse, and proprietary technology with zero-carbon emissions aimed at last-mile logistics.

Hydrexia (Australia)

Hydrexia specialises in solid-state hydrogen storage equipment that stores hydrogen in solid form based on a proprietary magnesium alloy. This technology enables hydrogen to be stored more economically with less space and weight, at much-reduced pressure and with increased safety. This enables existing merchant hydrogen markets to be serviced better for lower cost and increases the potential of hydrogen as a clean energy carrier.

ION Mobility (Singapore)

ION Mobility is a smart electric motorbike company. It aims to lead the region’s transition towards a low-carbon economy with consumers’ electric and electric mobility products. It wants to provide clean alternatives for urban users to alleviate urban air pollution and lead the transition to electric vehicles across Southeast Asia, starting with motorbikes. The plan is to convert the 200-plus million motorcycle users from petrol to electric to drive a sustainable future in Southeast Asia.

Kazam (India)

Kazam is creating an ecosystem in the EV space, a super app for all charging needs of an individual driver. It also builds ERP software for organisations to manage charging hardware to control, assess, analyse and manage CPs and fleets. It also creates micro-entrepreneurs, who can own plug-and-play charging stations, which are IoT-enabled for unmanned management and monetisation of energy & parking space.

Also Read: Gobi, Petronas arm join forces for sustainable innovation in SEA, Greater Bay Area

Magorium

Magorium is a deep-tech startup with a solution to the plastic waste problem. Its technology converts contaminated and unsorted plastic into a new road construction material to pave greener roads. This aims to create a more sustainable construction sector using waste-derived materials.

Midwest Composites (Malaysia)

Midwest Composites is a composite engineering firm specialising in providing solutions to companies interested in using advanced composites and biocomposites in their business to help them realise their full potential. Its products primarily include Glass Fiber Reinforced Polymers (GFRP), Carbon Fiber Reinforced Polymers (CFRP) & Natural Fiber Reinforced Polymers (NFRP).

MYCL (Indonesia)

MYCL creates a sustainable leather-like material with mushroom technology called MYLEA. It’s an environment-friendly and recyclable material made from agricultural waste bound together with mushroom mycelium.

Semart (Malaysia)

Semart aims to provide street vendors with clear business insights, simultaneously improving their business operations. This enables them to make informed, timely and profitable business decisions and further explore growth opportunities for their business.

Open Energy (Singapore)

Open Energy offers HyperSwap, an advanced and cost-effective EV fleet battery swap solution. Its stations integrate into existing energy infrastructure, acting as distributed energy storage units to stabilise the grid.

Accacia (India)

Accacia is an AI-enabled platform to help real estate and infrastructure companies (developers, asset managers, financial institutions, operators, and governments) meet their net-zero goals. Its platform automates the measurement of scope 1, 2, and 3 carbon emissions for operating assets and embodied carbon for under-construction assets. It allows companies to track emissions at the asset and portfolio levels with full consideration of organisational boundaries defined by the GHG Protocol. Along with asset-level emissions, our platform helps asset managers track environment-related climate risks for their portfolios.

Also Read: PETRONAS FutureTech 2.0 to catalyse tech startup innovation in the energy sector

Qarbotech (Malaysia)

Qarbotech is a nanotechnology-enabled agritech provider in Asia for sustainable agriculture and horticulture. It encourages the adoption of sustainable products and technologies among agropreneurs. The firm builds professional knowledge, skills and competence in agropreneurs and a circular bio-based economy for agriculture and horticulture.

SAPOT Tech (Malaysia)

SAPOT is a digital self-care and social support platform that helps young adults with poor mental wellbeing to manage their thoughts and emotions.

SunGreenH2 (Singapore)

SunGreenH2 transforms green hydrogen production from electrolysis with proprietary technology to manufacture high-performance, low-cost electrolyser components using advanced nanostructured materials.

Tigasfera (Malaysia)

Tigasfera is an industry innovator in sustainability with a primary focus on waste-to-energy by developing distributed energy systems that convert waste at the point it is generated into energy at the point it is needed.

Also Read: Malaysia’s Petronas sets up US$350M VC fund to invest in tech startups around the world

TraceX (India)

TraceX is a next-generation digital agriculture platform that leverages blockchain to connect multiple participants across the food and agri supply chain and help them securely exchange verifiable and auditable data.

V-Cred (Malaysia)

V-Cred is an AI software startup that helps companies perform due diligence with less time.

Wildfire Energy (Australia)

Wildfire Energy is a renewable energy startup developing technology for gasification and waste-to-energy applications. Wildfire has developed a gasification process to enable the cost-effective conversion of low-value biomass and waste feedstocks into high-quality syngas for electricity generation and the production of fuels and chemicals.

Zapp World (Malaysia)

Zapp is a sustainable, decentralised decarbonisation climate-tech venture. Its focus is on commercialising technologies that drive decentralisation and decarbonisation solutions. It partners with corporates to accelerate the transition to net zero, fostering joint ventures and partnerships that make a real impact.

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Image Credit: PETRONAS

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At the recent Gamescom Asia 2023 event in Singapore, Agate Chief Strategy Officer Cipto Adiguno spoke to the press about the significant changes that the Indonesian gaming industry has gone through.

According to him, there are two critical points that affected the company’s business significantly: the rise of mobile gaming that followed the popularity of internet cafes in the early 2000s and the appearance of digital payment options in the market.

“Low credit card penetration in Indonesia means that players have limited options, but the appearance of e-wallet allows users to purchase games more easily. This led to a sharp increase in our company’s sales,” Adiguno said before a panel discussion at the event.

“Game-playing also becomes an increasingly social activity. This does not apply only to multiplayer games. Back in the era of internet cafes or even game arcades, we often play by ourselves—but we also go to these places to meet friends. People today play games to allow them to socialise, being part of the cool kids even just from being able to talk about playing these games.”

These changes also affect the strategy that Agate uses for its business.

Also Read: Ampverse Web3 lead: Web3 integration in gaming is inevitable, yet challenges persist

“We had games that were specifically targeted for the Indonesian market, such as Memories: My Story, My Choice and Code Atma. [However,] in Indonesia, we learn that we cannot treat all users as a single persona,” he explained.

“Indonesia has a big population with diverse cultural and economic backgrounds; their behaviours vary greatly. This is why we give up on publishing this year because we realise that with this kind of situation, it will require a huge budget to get to a critical point where everyone is called to play a particular title. This is why this year we focus on development.”

Seizing opportunities in the global market

Agate is a Bandung-based game development company with a history that goes all the way back to 2009 when the company bootstrapped its operations as a student-founded business.

In the gaming industry, companies usually operate by either providing game development services for other businesses or developing their own unique content, but Agate operates by combining both aspects in its revenue model.

Adiguno highlights that the original titles that Agate produces allow them to showcase their skill range to potential clients and secure them as businesses.

Also Read: Industry veteran Marc Mercuri on how blockchain revolutionises gaming for players, creators

“Most game developers in Indonesia have their strengths in their ability to tell stories but remain challenged in the technical aspect of game development such as programming. This led them to focus on developing narration-driven games as it does not require deep technical skills. Instead, it focuses on the ability to create background stories, including those based on Indonesian folklore that they incorporate into the game,” he said.

“We are becoming a more globally oriented company with clients expecting us to be able to translate their stories into a unique game. They need us to be able to translate these stories into a fun game which requires high technical skills.”

Next year, Agate predicts that 2024 will be a turning point for the Indonesian gaming industry.

“People begin to see Indonesia’s potential, that there are indeed good products. Especially with upcoming government regulations to protect the gaming industry. We have more and more international companies reaching out to work together with us.”

To help support its acceleration goal, Agate is currently fundraising for its latest funding round.

“We no longer see ourselves as the biggest Indonesian gaming company. We see ourselves as competing with the global players. We use our advantages as an Indonesian company to win over opportunities.”

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Image Credit: Agate

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In an era defined by rapid technological advancement, the landscape of customer engagement is evolving at an unprecedented pace. Enterprises worldwide are seeking innovative ways to stay ahead, and at the forefront of this revolution is Vonage, a trailblazer in making communications more flexible, intelligent, and personal. Their suite of offerings includes unified communications, contact centres, conversational commerce and communications APIs, all built on a fully programmable cloud communications platform.

In partnership with e27, Vonage is set to host a groundbreaking conference in Malaysia at the Pullman Hotel Kuala Lumpur on November 2, 2023. Aptly titled “Navigating the Customer Experience: AI’s Impact on Omnichannel Touchpoints”, this event aims to provide actionable insights into the role of emerging technologies in customer engagement, delving into the realm of AI’s influence on omni-channel touchpoints and the dynamic customer experiences it fosters.

The AI landscape for customer engagement in Malaysia

With a burgeoning middle class and a digitally savvy populace, Malaysia’s consumer landscape has undergone a remarkable transformation.

Customers today seek seamless, personalised experiences across a multitude of channels, from online platforms to brick-and-mortar establishments. This shift in consumer behaviour demands a recalibration in how businesses engage with their clientele. Embracing innovative technologies, particularly in the realm of Artificial Intelligence, is no longer a choice, but a strategic imperative. By harnessing the power of AI, businesses can not only meet the evolving demands of their customers but also position themselves at the forefront of Malaysia’s dynamic digital frontier. This forward-thinking approach is integral in not only attracting new customers but, crucially, retaining them in an increasingly competitive market.

Also read: Taking customer engagement to the next level with hyper-personalisation

With Malaysia standing at the nexus of a burgeoning AI landscape, the country is poised to redefine customer engagement strategies. With the integration of AI technologies, enterprises are on the cusp of unlocking a new dimension of customer interactions. From chatbots to virtual assistants and video/voice-based AI, these innovations are revolutionising the way businesses connect with their clientele. As such, businesses must learn the ropes around harnessing new technologies to bolster their customer experience strategies.

Trends and impacts of AI adoption

Within the Malaysian business ecosystem, AI adoption is more than a trend; it’s a transformative force. Chatbots that provide instant, personalised responses, virtual assistants that anticipate customer needs, and AI-driven video and voice interactions are becoming indispensable tools. These technologies are not only streamlining operations but also enhancing user experiences across diverse industries like e-commerce, travel, fintech, and government services.

However, as with any innovation, challenges arise. Malaysian organisations grapple with linguistic diversity and connectivity issues. Overcoming these hurdles necessitates the integration of emerging AI technologies. These advancements are poised to not only shape customer engagement strategies but also have a profound impact on marketing and product development in ways that enable businesses to focus on broader, long-term goals.

Sustainability and integration strategies

As Malaysia’s digital landscape is becoming increasingly prominent, the need for sustainable and scalable AI solutions is paramount. Vonage, with its forward-thinking approach, addresses key considerations: affordability, ease of integration, and customer acceptance. Through the showcase of successful Malaysian case studies, the event aims to exemplify how AI can offer a slew of solutions to present-day challenges faced by businesses, such as addressing fraud and data privacy concerns while simultaneously enhancing the customer experience, among others.

Uncovering the amplified impact of AI on customer engagement

As businesses embrace AI, they unveil an entirely new dimension of customer interactions. Join “Navigating the Customer Experience: AI’s Impact on Omnichannel Touchpoints” to learn how this integration amplifies customer engagement, leading to transformative business outcomes.

Also read: Learn how to Harness AI for cost-efficient strategies with GDP Labs CEO & CTO

The event will feature industry leaders and experts from various areas of the customer experience vertical, including Santhakumaran Atmalingam, Founder of CX EXPERT ASIA, Elizabete Kalnozola, Advisory Board Member of Girls in Tech Kuala Lumpur, Sena Thevaratnam, Group Head of Customer Support of Valiram, Poo Kuan Hoong, Lead Data Scientist, RGM of BAT, and Desmond Koh, SEA Head of Sales for Vonage.

They will be joined by more thought leaders who stand at the forefront of sculpting the conversational AI landscape for customer engagement, pushing the boundaries of what’s possible.

Your perspective matters

Your unique perspective is an invaluable addition to the ideas that will shape the future of customer experience. Don’t miss out on this transformative event. We look forward to interested participants who are eager to explore the possibilities of AI’s impact on omni-channel touchpoints on November 2, 2023, at Pullman Hotel Kuala Lumpur, for an exciting series of discussions that promises to redefine the future of customer engagement in Malaysia.

For more information, visit the official event page here.

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This article is produced by the e27 team, sponsored by Vonage

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