Kiasu, a Hokkien term referring to the “fear of missing out,” perfectly describes a special class of Singaporean shoppers.

While the average Singaporean is even more picky than usual this holiday season, adjusting their spending to combat the rising cost of living, high inflation, and a looming recession, under these economic challenges, the kiasu shopper is more deal-hungry than ever. And this Christmas, luring these thrifties who will go to any length to avoid missing out on a deal will be harder than ever for retailers.

Great deals are certainly out there already. The abundance of second-hand trading platforms, ultra-low margin e-commerce sites, and increasingly competitive loyalty programmes available to Singaporeans mean that the island’s retailers need to do a whole lot more than just lower prices or launch sales. They need to use their data to make kiasu shoppers an offer they can’t refuse.

Traditional retail tactics, like promotions, price markdowns, and interactive customer experiences, can create value for customers. However, without understanding customer behaviour and sales trends, these tactics are a gamble.

Retailers in Singapore need to push themselves to create more value for kiasu shoppers during the festive period and beyond by gaining an extremely intimate understanding of their customers’ behaviours. Data collected across the retail workflow can answer the who, what, where, when, why, and how kiasu customers shop.

Timing is key

While data intelligence can boost seasonal sales – guiding the duration, timing, and best-fit products for price discounts – well-timed sales are crucial to acquiring the kiasu shopper. A recent study showed that 36 per cent of Singaporeans are waiting for big-ticket sales like the year-end holiday shopping season to start spending.

Also Read: How can businesses best capitalise on the holiday season?

Australian grocer Woolworths offers a case study of how well-timed sales strategies can create impact. Woolworths used insights gathered from segmented customer data, sales patterns, trading hours, and expiry data to schedule time-precise markdowns for individual stores. This improved its perishable goods sales, generating AU$55 (US$40) million in savings annually.

Local retail businesses can find inspiration in Woolworth’s data-driven approach. A well-timed price markdown, powered by customer and sales data, can help larger retailers in Singapore clear their large inventory of goods, spanning toys, clothes, and more while delivering great value to the kiasu shopper.

Staying well stocked

Data can also help businesses pre-empt the needs of the kiasu shoppers who want to purchase specific products at reasonable prices and receive them on time. Sports retailer Al-Ihksan Sports, which has more than 125 stores across Malaysia, highlights the need for a well-curated and stocked inventory to meet the needs of its customers.

“Consumers are willing to buy an MYR 400 pair of Adidas shoes but not for another brand… so, we need to bring the right products, right sizes, and colours at the right price points,” said Vach Pillutla, CEO of Malaysian sports retailer Al-Ikhsan Sports in a separate interview.

Retail businesses can turn to data for answers instead of second-guessing what customers want. Data like month-on-hand inventory can uncover hot selling items through easy-to-use analytics software and communicate these insights clearly through intuitive dashboards. Al-Ihksan Sports did exactly that, ensuring it brings in the right products at the right time.

A smarter way to sell

Understanding sales patterns or creating better experiences could become even easier in the next few years, with retailers already infusing technologies like artificial intelligence (AI) into their practices.

For example, today, companies use AI models to analyse supply chains and distribution channels and store machine sensor data to prevent out-of-stock scenarios. However, ironically, retailers could find themselves in a kiasu situation, with the real threat of losing out on sales if they don’t join the AI scramble now.

Meanwhile, generative AI is poised to revolutionise the retail industry by enabling personalised product recommendations and creative content generation, enhancing customer engagement and satisfaction. In the future, retailers will harness the power of generative AI to streamline operations, anticipate consumer preferences, and deliver more immersive shopping experiences.

Cosmetic retailer Sephora, for example, has adopted generative AI to create interactive “in-store” shopping experiences for Singaporean customers, providing a virtual assistant that provides personalised consultations and query responses that are comparable to their onsite beauty advisors.

Also Read: Holiday cybersecurity: Safeguarding businesses amidst increased cyber threats

Data is the fuel for these retail innovations, and it is crucial that businesses engage with the best technology partners to use their data efficiently and safely with the right protocols and systems.

A win-win scenario

Kiasu shoppers are the canary in the coal mine for retail businesses in Singapore. In a challenging and rapidly evolving socio-economic climate, retail businesses on the island need agility to “not miss out” themselves.

Data delivers this agility, not only making retail businesses intelligent, but far more alluring to the kiasu shopper. This Christmas will prove that data can help both businesses and customers make the right decisions – creating a “win-win” situation for retailers and kiasu shoppers.

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2023 was a roller coaster ride for regulators around the world. From figuring out how to regulate new emerging technologies such as artificial intelligence platforms like ChatGPT to managing data leaks to high-profile crypto prosecutions, 2023 was an exciting time throughout the year.

In 2024, there are several upcoming regulatory changes that may be taking place in Malaysia.

Regulatory clarity on the use of  SAFE (Simple Agreement for Future Equity) and convertible notes 

The Securities Commission of Malaysia, the capital market regulator, in December 2023 said that it is seeking to introduce a “small offering exemption” in the current securities law in 2024. 

The exemption may permit safe harbour for offerings of a “certain size” to sophisticated investors (i.e., high-net-worth people or accredited investors). To illustrate, Singapore’s threshold is capped at an SG$5 (US$3.70) million funding limit to selected investors. 

The new exemption rule would likely provide better regulatory clarity in line with international practices for startups and small and medium enterprises in Malaysia seeking to raise funds using legal instruments like SAFEs and convertible notes, which are the usual norm for early-stage startup funding in Silicon Valley. 

Cyber Security Bill

Current cyber security offences are regulated by multiple key laws that need serious overhaul, including the Computer Crimes Act 1997, the Communications and Multimedia Act 1998, the Malaysian Penal Code and the Personal Data Protection Act 2010. 

Also Read: Navigating the AI landscape in 2024: Why there is an urgency for enhanced governance

The new Cyber Security Bill is likely to be an omnibus bill form, which means that the bill may cover changes in other present legislations, such as the ones highlighted in the earlier paragraph, to ensure that existing laws may be streamlined, including distinguishing the roles of different entities to minimise any overlaps. 

The government also said the National Cybersecurity Agency (NACSA) under the present National Security Council will be designated as the main entity to regulate and enforce cyber security laws and enhance the country’s cyber resilience. Separately, there is also a plan to form a Cyber Security Commission to strengthen cyber security, but the discussion is still at the preliminary stage, and we may likely hear more updates this year.

A government official said that the Cybersecurity Bill may likely be tabled during the third or the fourth quarter of parliamentary sitting this year. Ordinarily, a draft bill would be made available for public consultation, which we would expect in this quarter or so.

As a startup that may not already be in a regulated space, such as a fintech startup, you may likely need to assess your cyber security policy and internal processes with your IT team to ensure that you are in compliance with the new Cyber Security Bill once it comes into force.

Amendments to the Personal Data Protection Act

Another long overdue bill that has yet to be tabled by the parliament is the amendments to the current personal data protection laws. The minister in charge mentioned that the bill is in its final stages and is expected to be tabled in March of this year.

Among notable improvements include a mandatory obligation for data users to designate and appoint a person as a ‘Data Protection Officer’ and mandatory data breach notification to the Personal Data Protection Department. The bill was meant to be tabled in 2022 but was put on hold due to the general election, so we may likely see the long-awaited changes to be tabled this year.

The Personal Data Protection Department will also further be empowered as a statutory authority as opposed to its present role as a government department under the ministry to better address data leaks and execute its functions more effectively. 

In early 2023, the Singapore and Malaysia governments signed a memorandum of understanding (MOU) to cooperate on personal data protection areas, including the promotion of cross-border data flows and sharing of expertise on personal data protection policies, including monitoring cyber security incidents. So, we may likely hear more updates on this this year.

As a company, you need to take proactive steps and speak to your usual startup lawyer to help assess and update your existing data processing systems and processes in anticipation of it being rolled out in the near future.

Revised beneficial ownership reporting requirements

The new Companies Act amendments bill will include new requirements for companies to maintain a register of beneficial owners (RBO) to enhance corporate transparency. 

Also Read: What is your ecosystem strategy and why is it critical in 2024?

Under the amendments, a company needs to maintain a register of beneficial owners (RBO) at the registered office of the company and report any changes to the Companies Commission of Malaysia (CCM) within 14 days.

The amendments were initially tabled for the first reading in the parliament in October 2023. The second reading may likely be expected to be this year, but it is unclear when the amended Companies Act will come into force. 

The regulator may likely need to release further guidelines on how these provisions will be implemented. Ordinarily, the government may likely allow a certain grace period for companies and relevant parties to adhere to these new provisions. As a founder, you may likely need to speak to your usual service provider to ensure compliance.

Capital gains tax on disposal of unlisted shares

Starting 1 March 2024, a capital gains tax of 10 per cent will be enforced against gains or profits received pursuant to the disposal of unlisted shares held in private companies. 

There are still many questions that need to be answered with respect to the proposed capital gains tax. For example, it is unclear if founders and angels may also be subject to capital gains tax or not, as venture funds are likely to be exempt from such tax.

Also, companies that elect to get listed on the local stock exchange may also be exempted from capital gains. These exemptions are not mentioned in the recent bill, so they may be likely to be included in a subsidiary legislation this year.

The new capital gains tax may likely impact the local startup scene. Several investors and founders have indicated that they may be considering redomiciling the entity elsewhere to avoid tax exposure. To illustrate, in Asia, only Singapore and Hong Kong do not tax capital gains. 

As a founder, you will need to stay up to date to ensure necessary actions may be taken in a timely manner to manage any potential tax implications together with other shareholders that may be impacted by the new proposed tax. 

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Indonesian agritech startup Semaai has secured US$4.7 million (approximately IDR 73 billion) in a mix of equity and debt financing led by CyberAgent Capital (Japan).

New investors Sumitomo Corporation Equity Asia, Ruvento, MyAsiaVC, and Heracles Ventures, besides existing backers Peak XV’s Surge, Accion Venture Lab, and Beenext, participated. This brings its total funding raised to date to US$7.6 million.

“With the new funding, our company will collaborate with financial institutions and fintech providers to expand our embedded fintech solutions, having already doubled Semaai’s total transaction volume in the last 12 months. This is part of our goal to provide an integrated digital ecosystem that addresses disruptions in the supply chain and fills knowledge gaps for Indonesia’s agri-retailers and smallholder farmers,” said Muhammad Yoga Anindito, Co-Founder and CEO of Semaai.

Also Read: Semaai nets funding to create integrated digital ecosystem for farmers, toko tanis in Indonesia

It will also use the new funds to expand its agronomy advisory service to agri-retailers and farmers and strengthen its presence in Central Java. Semaai plans to cover 75 per cent of the over 8,2001 villages by the end of 2024.

Semaai is a ‘farmer-first’ company building full-stack agritech solutions to help farmers and rural MSMEs such as toko tanis in Indonesia maximise their earning potential and access better financing, services and new markets.

The agritech firm provides three essential services:

1. B2B digital marketplace for agricultural inputs such as seeds and fertilisers,
2. agronomy advisory services to improve their farming practices. The agronomy advisory service allows access to educational content organised by crop type and focused on crop-related pests and diseases. The content aids users in thoroughly understanding the complexities of crop issues and empowers them to prepare to mitigate and address future problems. Users are then recommended products from Semaai’s marketplace platform, culminating in hassle-free doorstep delivery,
3. financial services in partnership with financial institutions and fintech providers.

Semaai claims its net revenue has increased over 15x in the last 12 months, and its Toko Tani marketplace user base has doubled. Furthermore, its advisory feature has witnessed an 8x increase in adoption in the last six months and is used by most of Semaai’s active users.

Also Read: The opportunities and challenges Singapore’s agritech sector faces

In February 2023, Semaai closed a bridge funding round led by Accion Venture Lab and XA Network.

Indonesia’s agricultural sector, together with forestry and fisheries, grew 1.46 per cent every year and 1.61 per cent on a quarterly basis. Badan Pusat Statistik 2023 data shows that the agricultural sector contributed 12.71 per cent of the country’s total GDP.

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Komunal, a fintech company offering neo-rural bank services in Indonesia, has raised US$5.5 million in a Series A extension funding round led by Sumitomo Corporation Equity Asia.

Jafco Asia, Skystar Capital, Sovereign Capital, and Gobi Partners co-invested.

With the Series A+ funding, the startup aims to drive financial inclusion in Indonesia by digitalising rural banks. The company will also continue to expand its product offerings and develop partnerships with new rural banks, particularly those outside Java and Bali.

Also Read: Komunal lands US$2.1M Series A to boost financial inclusion in Indonesia through neo rural bank services

Launched in 2019, Komunal digitises rural banks by combining funding access and hyperlocal lending to support economic growth in Indonesia. It provides financial services to the underbanked population through its unique partnership with the rural banks in Indonesia.

The firm’s vision is to elevate rural banks and SMEs in the archipelago to serve their local community better.

It has so far partnered with 376 rural banks and channels productive loans to MSMEs predominantly based in tier 2 and 3 cities. Through its digital-based DepositoBPR offering, Indonesians can deposit funds in hundreds of rural banks, eliminating the conventional need for face-to-face processes. These deposits also offer higher interest rates than deposits offered by commercial banks.

In 2023, Komunal claims to have channelled US$600 million in combined loans and deposits — nearly tripling from the previous year. Through KomunalP2P, the company has disbursed US$250 million in loans to over 1,300 MSME projects throughout the country.

Also Read: P2P lending platform Komunal raises investment to improve the funding access to Indonesia’s MSMEs

Additionally, DepositoBPR has also channelled US$350 million in deposit funds to 376 rural banks across the nation.

In September 2021, Komunal received US$2.1 million in its Series A round of financing, led by East Ventures, with participation from Skystar Capital.

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(This article — first published on September 18, 2023 — has been updated with the details of the latest court order.)

In yet another blow to Nasdaq-listed Society Pass Inc., a US court ordered the data-driven loyalty company to pay US$1.08 million to its former CTO, Rahul Narain, for breaching his employment contract.

The latest judgement, delivered on December 26 by the Supreme Court of the State of New York (the US) on a lawsuit filed by Narain four years ago, comes over three months after the court directed the firm to pay approximately US$750,000 to the plaintiff. Narain had appealed to add a 9 per cent interest rate, which the court granted.

The final amount of US$1.08 million included ~US$749,190 (the value of the 130 company shares Narain is entitled as per the contract) with interest thereon at the statutory rate of 9 per cent per annum from September 4, 2019, until the entry of judgment in the amount of US$290,000.

Also Read: Ex-CTO drags Society Pass into court for “breaching employment contract”, seeks over US$1.3M in damages

“…Adjudged that Plaintiff Rahul Narain, residing at 15721 Berea Drive, Odessa Florida 33556 do recover of Defendant Society Pass Incorporated, with its principal executive office located at 701 S. Carson Street, Suite 200, Carson City, Nevada 89701: (a) the sum of $749,190.00 with interest thereon at the statutory rate of 9% per annum from September 4, 2019 until entry of judgment in the amount of $290,767.82; (b) the sum of $10,000.00 with interest thereon at the statutory rate of 9% per annum from September 1, 2019 until the entry of judgment in the amount of $3,888.49; the sum of $10,000.00 with interest thereon at the statutory rate of 9% per annum from October 1, 2019 until the entry of judgment in the amount of $3,814.52; (c) the sum of $10,000.00 with interest thereon at the statutory rate of 9% per annum from November 1, 2019 until the entry of judgment in the amount of $3,738.08; together with costs of $200 and disbursements of $480 taxed by the Clerk of the Court, respectively, making in all the sum of $ 1,082,078.91 and that the Plaintiff have execution thereon,” read the judgement.

The case concerns the employment contract signed between Society Pass and Narain in 2019. As per his complaint, Narain joined Society Pass as an advisor and consultant for a term of approximately three months in November 2018. The agreement said Narain — a highly experienced computer programmer and technology advisor and formerly the chief architect for IBM Mobile Appliance — would join the Vietnamese firm as its CTO at the end of the said term.

Both parties also extensively negotiated an employment contract in January 2019, following which Society Pass agreed to pay Narain a monthly salary of US$20,000, effective January 1, 2019. Half the salary would be paid initially, with the balance to be paid upon the closing of Society Pass’s Series C financing round.

In addition, the firm, originally from Vietnam, also agreed to pay Narain US$36,000 annually (US$3,000 a month) towards his healthcare expenses. This payment was also due upon the closing of the Series C round. Besides, Society Pass would pay Narain a Series C Bonus totalling US$350,000.

Furthermore, Narain was also entitled to 4 per cent of Society Pass’s common stock upon Series C closing. The parties agreed that these shares would be issued to him in multiple tranches quarterly, effective February 1 2019.

Also Read: US court orders Society Pass to pay pre-IPO shares to co-founder and ex-CMO; company under SEC probe

However, Narain accused the company of failing to honour the contract terms and pay him his earned salary compensation, bonus payments, healthcare reimbursements, equity awards, and severance pay.

Earlier in September last year, the court ordered Society Pass to award a significant block of pre-IPO shares valuing approximately US$6.61 million, with up to an additional US$2.38 million penalty interest, to its co-founder and former CMO Thomas O’Connor for the breach of the Common Stock Purchase Warrant.

According to court documents, Society Pass was being investigated by the US Securities and Exchange Commission (SEC) earlier this year.

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