The majority of startups (98 per cent) across Southeast Asia and India agree that artificial intelligence (AI) is important in their future strategy, a new study commissioned by global CRM company HubSpot has revealed.

This sentiment is high, particularly in India and Indonesia, where as many as 73 per cent and 63 per cent of respondents, respectively, strongly agreed with this statement.

The study conducted by Milieu Insight explored the trends and innovations shaping the startup landscape in Southeast Asia and India.

According to this study, the emergence of AI is fundamentally transforming the startup landscape in the region, as it can automate repetitive tasks and create new roles that demand advanced skill sets.

Also Read: India beats Singapore, US to rank highest for AI project implementation

About 32 per cent of the startups surveyed see AI as a faster way to bring products to market, while 30 per cent believe it can help deliver products more quickly. As many as 30 per cent view AI as a tool to level the playing field against bigger competitors and incumbents.

“Today, AI is viewed as the single largest economic opportunity since the start of the internet, and data is the currency of AI,” said Laurence Butler, Global Senior Director of HubSpot for Startups. “By leveraging AI, startups can quickly identify gaps in their business models, better anticipate customer needs, and improve their overall ability to deliver highly personalised customer experiences.”

However, technological advancement comes with its own set of challenges, particularly in the area of talent acquisition. For non-go-to-market positions, AI and machine learning engineers top the list of hardest-to-hire roles (35 per cent), followed closely by experts in data analytics (33 per cent), product management (33 per cent), and industry-specific specialists (33 per cent). Software engineers also remain in high demand (32 per cent).

For go-to-market positions, marketing (46 per cent), customer success (40 per cent), and sales and business development (38 per cent) roles are the most difficult to hire

Cost and experience are identified as the primary shortcomings in the current talent pool across the region. Other challenges include a lack of soft skills among candidates and a mismatch of expectations regarding remote and hybrid working arrangements.

The talent landscape varies across different countries:

In Singapore, the lack of diversity in the talent pool (41 per cent) and the shortage of specialised technical skills (37 per cent) are significant challenges, alongside costs (37 per cent).

In India, limited experience in startup environments (49 per cent), expectations misalignment regarding remote/hybrid work (49 per cent), a general shortage of talent (48 per cent), lack of soft skills (47 per cent), and high turnover rates (41 per cent) are prevalent issues, with cost being a major factor (50 per cent).

Indonesia mirrors many of India’s trends, although the challenges related to soft skills, remote/hybrid working expectations, and turnover rates are less pronounced.

Also Read: AVPN, Google.org launch US$15M fund to equip workers in APAC with AI skills

With the talent shortage showing no signs of easing, startups must rethink their talent strategies to overcome these hurdles. Solutions could include investing in upskilling and reskilling employees by tapping government-led talent initiatives such as Singapore’s SkillsFuture programme, leveraging remote work to access a broader talent pool, and fostering a culture that values diversity and continuous learning.

The HubSpot study further found that despite current global economic headwinds and private funding in the region declining to its lowest levels in six years, the startup ecosystem in Southeast Asia and India remains resilient, demonstrating significant signs of maturity.

On average, about half (53 per cent) of startups across the region found it easier to grow their businesses in the past year compared to previous years. Notably, startups recognise the need to balance growth and profitability, with most regional startups agreeing that a clear path to profitability (98 per cent) has become more important in the last year compared to the previous years.

This resilience is characterised by an interesting dichotomy: while geographical expansion presents challenges, with 23 per cent of startups finding it harder to enter new markets, customer acquisition and retention have become more manageable.

Also Read: Amazon to train 15K individuals in AI skills; to invest US$9B into cloud infra in Singapore

Although 18 per cent mentioned that acquiring customers has become more challenging, more than half (55 per cent) of startups report improvements in customer acquisition and retention.

Increased competition (31 per cent), stricter customer demands (31 per cent), and access to capital (29 per cent) were cited as the key challenges to customer acquisition among those who mentioned acquiring customers have gotten harder.

Amid ongoing economic uncertainties, the findings collectively suggest that the most successful startups will be those that adopt the relevant technologies to collect and leverage customer data, boosting their growth or expansion prospects.

These findings were based on responses from 600 startup founders and decision-makers across Singapore, Indonesia, the Philippines, and India from February to March 2024.

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Singapore-based startup offering payee verification and identification solutions, iPiD (International Payment Identity), has just announced closing its pre-Series A funding worth US$5.3 million.

The raise, led by Monk’s Hill Ventures and joined by Quona Capital, QED Investors, Jungle Ventures, 1982 Ventures, Saison Capital, and Resolution Ventures, will be used to develop new products. The startup also is eyeing expansion into Southeast Asia and Europe.

In this interview with e27, iPiD co-founder and CEO Damien Dugauquier discusses the products and business expansion.

Edited excerpts:

Can you explain iPiD’s underlying technology? How does iPiD’s approach to preventing payments-related fraud differ from existing solutions in the market, and what unique advantages does it offer?

iPiD is an API-first platform that exposes its API to customers worldwide. It connects to various bank account validation schemes globally and improves them through intelligent routing and mapping.

Our flagship offering, Validate, tackles the escalating issue of fraud and failed payments within the payment industry by confirming payee names and bank account details

Also Read: iPiD bags US$5.3M in pre-Series A financing for its payee verification, identification solutions

Our approach is unique; we add value when connecting to schemes and remove the pain of connecting to many different schemes globally. We translate everything into a single API, making integrating the various flavours of Verification of Payee globally much easier for PSPs.

On top of this, we are developing solutions that include risk ratings to support pre-payment validation and AI-enabled account and name matching: more to come on this in the next quarter.

With the recent US$5.3 million pre-Series A round, what strategic priorities has iPiD identified for deploying these new resources, particularly in the Asian and European markets?

The new funds will be used to develop new products that prevent payments-related fraud and intensify iPiD’s focus on strategic markets such as Asia, including Southeast Asia, where we already have a significant team presence and operations. This region is pivotal as one of the largest remittance-receiving regions supported by vibrant economies.

Additionally, this funding will support the commercial rollout of our solutions in Europe, particularly aiding financial institutions in complying with the upcoming Verification of Payee regulation, which will be enforced by 2025.

In light of the upcoming Verification of Payee regulation in Europe by 2025, how is iPiD preparing to support financial institutions in achieving compliance, and what challenges do you foresee in this regulatory landscape?

Our iPiD Node is fully ready and ensures compliance with both the European regulation, the EPC scheme, and the UK’s Confirmation of Payee scheme.

What specific measures is iPiD implementing to ensure the security and reliability of its payment validation technologies in regions with less robust financial infrastructure?

iPiD is ISO 27001-certified and, therefore, operates at the highest level of information security. We have a highly secured API infrastructure and encrypt data end-to-end. At the same time, we actively monitor flows on the platform to detect anomalies and act on them.

Also Read: Digital scams are on the rise – Is Asia ready for the fight?

Could you provide insights into the key milestones iPiD aims to achieve in the next 12 months following this funding round?

iPiD’s focus will triple in the coming 12 months: supporting Payment Service Providers in Europe to comply with Verification of Payee regulations, expanding our reach in Southeast Asia as a remittance-receiving region, and driving product development to prevent payment fraud from our development hubs in Singapore and Kuala Lumpur.

As iPiD expands its presence beyond Southeast Asia, what key factors will influence its entry strategy into new markets, and how will it adapt its solutions to meet the diverse needs of different regions?

iPiD is a global company able to serve PSPs in any region. Initially, iPiD will focus on regions where regulation is developed or in force regarding bank account validation and regions with high remittance flows.

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Image Credit: iPiD.

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With the recent trends of ‘Women in STEM’ booming on social media platforms, it is time to take a peek into the gender disparities of the tech sector in Singapore. With 60,000 coding professionals needed in Singapore over the next three years and a heavily documented tech-talent crunch, there is still a lack of women in this industry. 

Shockingly, women make up less than 50 per cent of the tech workforce in Singapore. This gender disparity underscores the need for change in the tech industry, with a call for initiatives that empower women to pursue careers in tech. Moreover, the reasons for this disparity lie in the lack of female mentors and role models, alongside other personal and familial responsibilities that are handed to women.

The importance of diversity in tech

Diversity is not just a buzzword; it’s a fundamental driver of innovation and progress in the tech industry. Research consistently shows that diverse teams outperform homogeneous ones, with gender-diverse teams being 15 per cent more likely to excel.

In Singapore, fostering gender diversity in tech is not only a matter of equity but also a strategic imperative for companies looking to remain competitive. Companies with more women in decision-making roles experience higher financial returns, demonstrating the tangible benefits of gender diversity in driving business success.

Also Read: The climate change and gender equality connection: How to support underfunded women-owned business

Trends and future of women’s participation in tech

The future of women in Singapore’s tech industry is promising, driven by a global movement towards greater gender inclusivity. As Singapore continues to position itself as a regional tech hub, there is increasing recognition of the importance of diversity in driving innovation and competitiveness.

Initiatives aimed at empowering women in tech, such as mentorship programs, networking events, and advocacy campaigns, are gaining traction. These efforts not only encourage more women to pursue careers in tech but also foster a supportive ecosystem where women can thrive and succeed.

While the tech industry is difficult to navigate, there are ample learning and networking opportunities for women who are now inspired to take a step towards tech. Some traditional tech roles, such as software engineering, stay ever-green and as lucrative as ever, with a starting salary of no less than SGD 40,000 for newcomers.

Ultimately, proactive outreach, networking, acquiring new skills through tech courses, and interacting with experts in the field is a great way to familiarise yourself with the industry, and the successful women that make a big part of it. 

An advice for women diving into the tech industry in the middle of their careers is to upskill in some of the growing tech departments, such as data analytics, web development, cybersecurity and python programming. Experts have shown that these four fields promise the best career opportunities in the upcoming years.

Advantages of upskilling in tech for women

Upskilling presents a transformative opportunity for women seeking to enter or advance in the tech industry. Nowadays, training programs in tech provide not only technical skills but also valuable mentorship, networking, and career support.

Through hands-on training and practical projects, women gain real-world experience that prepares them for success in tech roles. Furthermore, by acquiring in-demand skills such as data analytics, web development, cybersecurity, and Python programming, women can position themselves for diverse and rewarding career opportunities in Singapore’s thriving tech industry.

Also Read: Women and AI: How startups can prevent gender bias and promote responsible use of the tech

Beyond immediate career prospects, upskilling in tech empowers women to shape their own futures and contribute meaningfully to society. By investing in their education and professional development, women can break free from traditional gender roles, challenge systemic barriers, and inspire future generations of women in tech. Ultimately, the benefits of upskilling extend far beyond individual success, driving positive change and innovation throughout the tech industry and beyond.

Final thoughts

In conclusion, despite the gender disparities that persist within Singapore’s tech sector, there is cause for optimism. With continued efforts to promote diversity and inclusion, Singapore is poised to build a more vibrant, resilient, and innovative tech ecosystem that benefits everyone.

By supporting initiatives that empower women to upskill, pursue rewarding tech careers, and contribute to the industry’s growth, we can create a future where women are equally represented and celebrated in Singapore’s tech sector. Together, let’s seize the opportunities ahead and create a more inclusive and equitable future for all.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Singaporean businesses face a critical question in a world that is becoming increasingly Brittle, Anxious, Non-linear, and Incomprehensible (BANI): can we adapt and thrive in the era of Globalisation 4.0?

The answer is a resounding yes, but it requires a strategic shift towards regionalisation and internationalisation. We believe that Singapore is uniquely positioned to capitalise on these trends, but success hinges on a proactive and data-driven approach.  

This article dives into key takeaways from IndSights Business Leaders Forum Panel: “Growth Opportunities for Singapore Companies in Internationalisation and Regionalisation.” The forum panellists shared their expertise and experience, including what they thought were the essential pillars for Singaporean businesses to build a sturdy foundation for overseas success. 

Proactive growth: Owning the future in diverse markets

In today’s rapidly evolving global landscape, Singapore businesses are renowned for their adaptability and agility. Moving forward, success lies in proactive growth, where seizing opportunities and leveraging innovative technology is paramount.

The confluence of regionalisation and Globalisation 4.0 presents a unique opportunity for Singaporean businesses to flourish in the face of a BANI world. To stay ahead of the curve, Singaporean businesses must act decisively, take calculated risks and harness the potential of digital technologies.

Singapore businesses are well-positioned to thrive in the era of Globalisation 4.0. Through collaborative, data-driven strategies that prioritise trust, market insight, and digital transformation, Singapore companies can unlock the full potential of regionalisation and/or reinforce their positions as global frontrunners.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

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Digital tools are critical for boosting financial inclusion and cross-border connectivity.

Last year, the World Bank ticked off the third consecutive all-time high for international remittances. Despite global COVID-19 lockdowns ending less than two years ago, global remittances rose 3 per cent over the previous year to about US$860 billion in 2023. And a huge source of these came from Asian workers.

Millions of workers across Southeast Asia send money to their families and loved ones daily, with anticipated transaction value reaching US$8.07 billion by 2028. Forecasted to grow at an annual rate of 7.20 per cent, digital remittances have played a pivotal role in shaping national economies, most notably in the Philippines where they account for 2.2 per cent of gross domestic product (GDP). 

As a vital source of foreign capital, it is in every nation and business’s interest to facilitate easier management and transfer of international remittances. Historically, this would have involved long queues at brokers such as Western Union. However, thanks to emerging financial technology (fintech) players and digital access, sending money has become easier and quicker for workers from SEA. 

Nevertheless, a significant number of workers in SEA and abroad remain unbanked and reliant on the cash economy, especially in markets such as Vietnam. This presents a huge wealth of untapped opportunities to help SEA workers reap the benefits of digital finance and remittances.

A US$1 trillion opportunity 

SEA’s digital growth is one of its biggest success stories of the last decade. The region now boasts 460 million young, tech-savvy consumers and a digital market likely to reach US$1 trillion in value by 2030.

Also Read: Understanding the role of fintech, blockchain in transitioning to net zero

The COVID-19 pandemic dramatically increased digital inclusion within SEA, with 40 million people across Singapore, Malaysia, Indonesia, the Philippines, Vietnam and Thailand coming online for the first time in 2021. Today, the number of digital consumers in SEA stands at 460 million while Smartphone penetration among internet users ranged from 98.8 per cent in Thailand to a low of 81.7 per cent in the Philippines in 2022.

Amid this incredible digital growth is a rapid acceleration in the use of digital and smartphone payment platforms. Digital payments via eWallets totalled US$22 billion in 2019 and are forecasted to surpass US$114 billion by 2025.

Prominent eWallet providers such as GCash in the Philippines and TrueMoney in Thailand have incorporated remittance-specific services into their offerings. Even Grab, which has evolved from a ridesharing service to a multi-purpose application, is touting future Grab Wallet transfers between SEA nations. The surging popularity of these digital wallets is a driving force behind the expansion of digital remittance services in SEA, but they are currently only scraping the surface of the region’s potential. 

Given the number of unbanked workers in SEA and the rapid innovation in FinTech, there is an unparalleled opportunity to allow more people to reap the benefits of migrant work. However, better access to digital remittances necessitates good interoperability between banks and financial providers across SEA.

Regional cross-border payment interoperability has made strides in SEA over the last year. In June, a new regional cross-border payment system was launched, allowing residents of Malaysia, Thailand and Singapore to pay for goods overseas using a QR code. Part of this scheme includes setting up an ecosystem to better support remittance payments and other economic activities. 

Also Read: Navigating the gender divide in the Southeast Asia’s fintech landscape

The more banks, financial institutions and Fintech applications work towards creating pan-ASEAN interoperability, the better equipped they will be to capitalise on the region’s remittance economy.

The benefits to workers cannot be understated. Instead of days, relatives and other recipients can receive funds in seconds rather than days. The cost of sending will become cheaper; users will be able to send more money and view in real-time the journey of their funds. 

Meanwhile, by emphasising cross-border real-time payments, local currencies’ usage is promoted, fostering financial resilience and advancing regional economic integration, ultimately contributing to the cohesion and stability of ASEAN as a unified entity.

Looking ahead, ongoing innovation and technological advancements have created a positive outlook for digital remittances in SEA. Financial and technology players that look to capitalise on this potential can be optimistic, with enhanced convenience and accessibility looking promising for individuals and businesses alike.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page.

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