In today’s rapidly changing business landscape, Environmental, Social, and Governance (ESG) practise have emerged as a powerful framework that extends far beyond environmental concerns. While ESG is often associated with larger firms and global corporations, its significance for small and medium-sized enterprises (SMEs) driving long-term sustainable growth cannot be underestimated.

With the recent announcement of the revised Malaysia Budget 2023 with a strong emphasis on ESG activities, the stage is set for SMEs to embrace ESG and unlock their true potential.

At the recent GoFlex Mingle with Entrepreneurs, “How ESG Factors Drive Business Success”, eminent speakers shared their thoughts on how embracing ESG can encourage economic growth and contribute to a sustainable future.

GoFlex Mingle with Entrepreneurs aims to bring the latest business knowledge to SME owners by providing access to speakers and fostering knowledge exchange among entrepreneurs.

A journey into ESG: More than meets the eye

ESG encompasses a comprehensive range of initiatives that intertwine seamlessly to create a holistic framework. It goes beyond the environment and includes social responsibility and sound governance practices. By integrating these three pillars into their operations, businesses can cultivate resilience, adaptability, and long-term sustainability.

As Ms. Amy Rashina, CEO and Founder of GoFlex Events, points out, ESG is more than just the sum of its parts; it is a fully comprehensive framework where initiatives complement each other, leading to enhanced business outcomes.

Budget 2023: A catalyst for ESG initiatives

The revised Budget for 2023 catalyses ESG initiatives, reflecting the government’s unwavering commitment to sustainable development. Recognising the immense potential of ESG practises, the budget allocates additional funds and incentives for green technology, aiming to accelerate the adoption of ESG across industries.

Also Read: How climate tech companies in Asia measure the impact of their work

Ar. Ahila Ganesan, an ESG professional and Founder of Future Linq, emphasises that the dedicated focus on ESG reflects an understanding that sustainable development is not only an ethical imperative but also a driver of long-term economic growth and competitiveness.

Why ESG matters for SMEs

ESG is often seen as the domain of larger corporations, but SMEs are well-positioned to benefit from its adoption. SMEs play a vital role in driving economic growth and job creation in Malaysia, and they are increasingly recognising the value of embracing ESG practices.

According to a report by Alliance Bank, one in four Malaysian SMEs has already adopted elements of ESG practices, with 80 per cent of ESG adopters acknowledging their value and planning to continue pursuing them. This trend demonstrates that SMEs are keenly aware of the positive impact ESG can have on their businesses, as highlighted by Ms. Pauline Goh, former General Manager of MAREA, Malaysia Recycling Alliance.

Empowering SMEs through ESG: A win-win approach

SMEs have much to gain from embracing ESG practices. By prioritising the environment, they not only align with global sustainability goals but also address the growing expectations of younger generations. This, in turn, enhances their ability to attract and retain top talent.

Furthermore, implementing sustainable measures leads to long-term cost savings, such as reduced power consumption, water usage, paper waste, and travel expenses. In essence, short-term investments in ESG initiatives yield long-term benefits for SMEs.

As Prof. Dr. Reuben Clemens, Conservation Scientist, Biodiversity Specialist and former Deputy Dean at Sunway University, highlights, the social aspects of ESG also provide SMEs with a clear competitive advantage. Embracing diversity and inclusivity within their workforce not only enhances their business outcomes but also fosters a positive work environment.

By meeting the expectations of younger generations through social initiatives, SMEs can improve recruitment efforts and enhance employee retention rates. Dr. Clemens emphasises that companies that prioritise ESG gain a competitive edge and foster customer loyalty by doing the right thing.

Placing innovation and governance at the forefront

Enforcing ESG practises within SMEs is a transformative process that unleashes their true potential. Mr. Georg Chmiel, Executive Chair and Founder of Chmiel Global Advisory highlights that ESG implementation drives profitability for SMEs. By adopting ESG principles, SMEs can also identify and address internal control breakdowns at an early stage, leading to more cost-effective resolutions.

Furthermore, aligning with ESG practices enhances SMEs’ credibility and attractiveness to lenders and investors. When SMEs demonstrate a strong commitment to sustainable and responsible practices, they increase their chances of securing funding and building strong partnerships.

Also Read: How to navigate the investment opportunity in climate tech sector

Chmiel also added that ESG practises also contribute to the stability of SMEs by reducing the risk of insolvencies, enabling early detection of operational challenges, proactive identification of areas for improvement, and strengthening competitiveness.

In conclusion, ESG practises have transcended the realm of larger corporations and are now empowering Malaysia’s SMEs for sustainable growth. The emphasis on ESG in the Malaysian Budget 2023 highlights the government’s commitment to promoting sustainability and creating an environment where businesses can thrive. By embracing ESG, SMEs can enhance their competitiveness, attract investors, improve their financial performance, and contribute to a sustainable and prosperous future for Malaysia.

As Ms. Pauline Goh also aptly pointed out, ESG practises have a positive impact not only on the environment but also extend to other areas such as social responsibility and governance. SMEs that prioritise ESG practices can benefit from improved recruitment efforts, higher employee retention rates, and increased customer loyalty.

Furthermore, ESG practises drive profitability by enabling the early detection of internal control breakdowns and impressing potential funders.

The findings from Alliance Bank reinforce the value of ESG adoption among Malaysian SMEs. With one in four SMEs already embracing elements of ESG practises and 80 per cent of ESG adopters recognising the long-term benefits, it is clear that the momentum for ESG is building. SMEs that proactively integrate ESG into their operations have reported improved profits, cost savings, and enhanced operational efficiency.

ESG practises have become a fully comprehensive framework that goes beyond the environment and holds immense significance for the growth and success of SMEs in Malaysia. The government’s commitment, coupled with the benefits that SMEs can reap from embracing ESG, paves the way for a sustainable and prosperous future.

Continuous education, learning from others, and exchanging ideas will play a crucial role in empowering SMEs to succeed in their ESG journey. By embracing ESG, SMEs can unlock their true potential, contribute to a sustainable Malaysia, and thrive in an evolving business landscape.

—

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

Image credit: Canva Pro

This article was first published on May 30, 2023

The post ESG empowerment: Fueling Malaysia’s SMEs for a sustainable future appeared first on e27.

As Korean content continues to captivate global audiences, the Korea Creative Content Agency (KOCCA) is broadening its international footprint with the opening of a new office in Singapore.

This expansion positions KOCCA at the centre of Southeast Asia’s financial and innovation hub. As a result, this will provide unparalleled opportunities for investors, startups and businesses to engage with Korea’s thriving content industry.

KOCCA’s move into Singapore clearly underscores the agency’s commitment to fostering Korean creative content.  Consequently, this will raise its presence and collaborations within the Southeast Asian market. In particular, the agency aims to bridge the gap between the two regions, offering a platform where innovation, creativity, and technology converge.

“For KOCCA and the Korean content industry, Singapore is a key strategic market. Korea’s creative strengths, combined with Singapore’s financial and technological expertise, create a powerful foundation for global expansion,” says KOCCA Regional Director Sang Wook Park. “We look forward to building strong partnerships and enabling Southeast Asian businesses and investors to tap into the immense potential of K-content,” he adds.

Also read: Why Korean investors are getting attracted to Southeast Asia

Korea’s Content Industry: A Global Powerhouse with Expansive Opportunities 

The Korean creative content industry has evolved into a global cultural phenomenon. For  example, K-pop, K-dramas, gaming, and digital media resonate with audiences across the world. Consequently, in 2022, South Korea’s content market ranked as the world’s eighth-largest, boasting a value of US$68 billion and generating US$13.24 billion in exports.

With a growing influence worldwide, Korean content has clearly solidified its place in the global economy. Accordingly, South Korea ranked 10th in Brand Finance’s Nation Brand Index among 193 countries, further highlighting the country’s cultural impact.

As a result of recognising the economic potential of K-content, the Korean government is driving substantial investment into the sector. By 2027, it aims to position Korea among the top four content-exporting nations globally. To achieve this, the government has launched a comprehensive Global Strategy for K-Content. This includes the establishment of a US$444 million K-Content Strategy Fund as part of a broader US$1.28 billion policy initiative.

Moreover, over the next five years, US$2.5 billion will be funnelled into the content industry. US$1.76 billion of this will be specifically allocated to the cultural sector through the Fund of Funds. Further, an additional US$734 million dedicated to the K-Content and Media Strategic Fund. Thus, this financial backing supports both the development of intellectual property (IP) and technological innovations such as AI, immersive content, and virtual reality.

KOCCA’s Strategic Initiatives in Singapore 

With the opening of its Singapore office, KOCCA aims to enhance its efforts in promoting the Korean creative content within Southeast Asia with a focus on Singapore. Evidently, the agency recognizes that Singapore’s reputation as a financial and technological hub positions it as the perfect base for the agency’s regional expansion. Through this office, the agency will launch various initiatives that integrate creative content with technological advancements, support Korean startups entering Singaporean and Southeast Asian markets, foster dynamic partnerships, and provide investors with access to Korea’s thriving content landscape.

In particular, key initiatives lined up for KOCCA’s Singapore office in 2024 include:

• Launchpad: An acceleration program specifically designed to help content tech startups navigate the Singapore market.
• UKNOCK: An IR pitching platform especially dedicated to connecting Korean content creators and IP holders with Southeast Asian investors and businesses.
• Participation in Major Industry Events: The agency will actively participate in key industry events such as the Asia TV Forum and Singapore Week of Innovation and Technology (SWITCH). This will in effect showcase Korean creative content and explore new partnership opportunities.

Also read: KOCCA NIGHT: K-Content Unleashed in Singapore

KOCCA Grand Opening Celebration 

The agency will celebrate its official launch in Singapore with the event “KOCCA NIGHT: K-Content Unleashed in Singapore”. This will take place on the 29th of October at The Executive Centre, Capital Square in Singapore. Presently, the event will introduce the agency’s initiatives to stakeholders and industry leaders. Not only will they showcase 10 of Korea’s most promising content tech startups, but they will also explore how K-Content is shaping the future of entertainment with advanced technologies.

Participating startups are:

• Twigfarm: A content localisation tool that uses AI to overcome language barriers. They will provide multilingual support and SDH subtitles for universal communication.
• PIASpace: A real-time CCTV analysis software. This uses multimodal AI to detect emergencies and anomalies with over 95 per cent accuracy, thus enhancing community safety.
• Muse Blossom: A content technology company offering “Audio Defence.” Specifically, this is an audio watermark solution that securely tracks and verifies audio files through inaudible signatures.
• B4Play: A gaming data platform selling self-constructed game metadata to various industries. In general, this includes TV and automotive manufacturers.
• Video Monster: Operates two platforms: “VideoMonster” for marketing video creation and “ViiV.” The latter generates and supplies user-uploaded travel videos to global travel companies.
• Witz: An automated IP licensing transaction platform. It streamlines the licensing process with standardised contracts and a user-friendly workflow.
• Production GOGEUM: A music distribution platform. In fact, it supports over 3,800 artists globally. Further, it has plans to launch “SOUND POUCH” for fan investment in music rights.
• Braindeck: Provides voice solutions for content companies. This includes voice restoration, creation, and deepfake detection. As a result, this enhances intellectual property value.
• Ninedock: A fintech platform that connects financial institutions with ad agencies. In particular, it utilises a credit scoring system for advertising contracts and invoices.
• Beat Corporation: A food tech company focused on robotic automation and platform development. Specifically, it aims to lead the global market through innovative services and app expansion.

—

This article is sponsored by KOCCA.

We can share your story at e27, too. Engage the Southeast Asian tech ecosystem by bringing your story to the world. Visit us here to get started.

Featured Image Credit: KOCCA

—

About KOCCA 

The Korea Creative Content Agency (KOCCA) was established in 2009 under the Ministry of Culture, Sports and Tourism to support the growth and global expansion of Korea’s creative content industry. Currently, KOCCA provides support for a wide range of content sectors, including broadcasting, music, gaming, fashion, animation, and tech-driven content, such as VR and AI.

KOCCA operates 25 overseas business centres, helping Korean creators and companies expand their reach in international markets. With its new Singapore office, KOCCA is taking a bold step forward in its mission to lead the global creative content industry and foster meaningful collaborations across borders.

The post KOCCA expands global presence with launch of Singapore centre appeared first on e27.

Singapore-based anti-money laundering solutions provider Tookitaki has secured an undisclosed sum in strategic investment from True Global Ventures (TGV) Opportunity Fund.

This capital will fuel Tookitaki’s expansion across Asia. It aims to deliver anti-financial crime solutions to financial institutions in regions where compliance with anti-money laundering (AML) and fraud prevention regulations is becoming increasingly critical.

Established in 2019, Tookitaki has developed two platforms. The FinCense platform features AML transaction monitoring, customer risk scoring, customer screening, regulatory compliance, case management, and customer due diligence.

Also Read: Thunes picks majority stake in Tookitaki for over US$20M

The AFC Ecosystem platform, on the other hand, brings together industry experts and institutions to continuously update and refine crime detection models, offering unparalleled real-time collective intelligence.

The company claims to have monitored over 10 billion transactions across 100 million consumers among its clients.

Beatrice Lion, General Partner of True Global Ventures, stated: “As regulatory standards tighten and financial crime evolves, Tookitaki’s platforms provide scalable, AI-driven solutions for AML and fraud prevention that will help institutions stay ahead of these challenges.”

In 2022, Singapore-based cross-border payments firm Thunes picked a majority stake in Tookitaki for US$20 million.

True Global Ventures is a global VC firm focusing on technology-driven businesses, particularly in AI, blockchain, and other disruptive industries. The TGV Opportunity Fund invests in late-stage technology companies with the potential to drive transformative change.

The post TGV invests in Tookitaki to drive innovation in anti-financial crime solutions appeared first on e27.

Blockchain technology has often received criticism regarding its relation to environmental sustainability, particularly due to its energy-intensive procedure. To address this, many organisations are working on building more eco-friendly solutions.

In an interview with e27, Bernhard Kronfellner, Partner and Associate Director of Digital Assets, Blockchain, and Metaverse at BCG, explains how blockchain can promote sustainability.

According to him, promoting and incentivising sustainable lifestyles among customers is the way to go.

“The problem with sustainability is the following: You can force corporations to work more sustainably, to produce more sustainably, to write those reports … But you cannot force individuals. You cannot say you must not use these plastic cups when the products are widely available to purchase,” he says on the sidelines of the recent TOKEN2049.

“But what crypto is very good at is incentivising individuals with tokens to do something in a certain direction. So, why not use a token as a loyalty point to incentivise good behaviour?”

Also Read: What startups need to know about Claims Code, the new rulebook for making credible climate claims

Kronfellner gave the example of BCG’s collaboration with VeChain, which resulted in the development of VeBetterDAO, a platform that rewards sustainable actions and aims to redefine how individuals and businesses approach environmental responsibility.

One use case is Mugshot, which allows users to take a picture of their coffee drinks and upload it to earn tokens. The difference is that users must use their own eco-friendly cups instead of the usual plastic cups provided by coffee chains. Using technologies such as AI, the app can verify that the user was actually in a coffee shop and used a reusable cup for their coffee.

This will allow them to earn tokens for their eco-friendly behaviour.

According to Kronfellner, the project gained around 40,000 active users at its beginning, starting with the VeChain community. However, with only organic marketing, it has grown significantly to 500,000 weekly active users.

Blockchain is the way to go

Seeing this use case, one might wonder why blockchain has to be included in this project. If our goal is to incentivise, should the existing loyalty programmes be enough?

There are advantages that the blockchain can offer, starting with the ownership of the token itself.

“It is not a loyalty point in your app which the app itself might disappear,” Kronfellner says. “You really own this token that you earned for your sustainable behaviour. That is why the blockchain is a very good choice.”

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

However, using blockchain to promote sustainable behaviour comes with its own challenges. One of them is creating a user experience that encourages the expected behaviour, but Kronfellner sees this as a tech-specific challenge.

The bigger one is more of a chicken-egg problem.

“When you are too small [of a company], you cannot go to the big companies [for a potential partnership] because they will need active users [as a proof of concept]. So, what you need to do is start with your own app and your own value proposition, then boost the user number. Partner with Web3 apps to bring in their ecosystem, then you move on to the Web2 players and climb the ladder to say that, now we are big enough to go to the big brands of the world.”

In creating blockchain solutions that promote sustainable behaviour in customers, startups need to consider the X-to-Earn factor.

“X here is the activity that one needs to do to earn the tokens,” Kronfellner says. “It should be something one does daily; Mugshot is a good example as we get our coffee everyday. Repetitive actions are a good X-to-Earn. Something that you only do once in a while does not keep the clients engaged.”

Kronfellner acknowledges that these initiatives will require plenty of marketing, but there is a shortcut in working with big brands and tapping into their existing audiences.

“List potential future partners in mind from the big corporations that you want to work with,” he closes.

—

Image Credit: © rawpixel, 123RF Free Images

The post Green for tokens: How to use blockchain to promote a more sustainable lifestyle appeared first on e27.

Southeast Asia’s digital economy is projected to surpass $600 billion in gross merchandise value by 2030, according to figures cited by the World Economic Forum. This highlights how certain innovations and policies can drive the region toward tremendous growth beyond the trillion-dollar mark.

Innovations like Web3, immersive technologies, and artificial intelligence are among the drivers of this change, and these will transform how brands engage consumers across the region. Such technologies now see use cases involving personalised, immersive, and user-driven experiences.

From digital collectibles to decentralised decision-making, brands are no longer limited to traditional means of ensuring customer loyalty.

Redefining ownership with digital collectibles

Non-fungible tokens (NFTs) and digital collectibles are reshaping how brands offer personalised experiences to their customers. In the context of Web3, these digital assets provide a new form of ownership that extends beyond physical goods, creating exclusive and immersive experiences for consumers both in the digital and potentially in the physical world.

A brand could issue NFTs as part of a new product launch, allowing consumers access to exclusive content, early product releases, or VIP events. These digital assets can be traded or collected, creating a new layer of engagement where consumers are not just passive buyers but active participants in the brand’s digital ecosystem.

Brands across Southeast Asia, including global giants like Nike, have already started to integrate NFTs into their customer engagement strategies. Its .SWOOSH platform allows members to collect and trade digital assets such as virtual shoes or jerseys. It goes further in terms of engagement, enabling NFTs’ owners to co-create these virtual goods and even earn royalties from these products.

Immersive engagement opportunities for brands

Augmented Reality (AR) and Virtual Reality (VR) also present new opportunities for brands to create immersive, interactive experiences that engage tech-savvy consumers.

For example, beauty brand L’Oréal in Singapore has successfully integrated AR with their virtual makeup tool, allowing customers to see how different products look before purchasing. This “try-before-you-buy” approach increases customer confidence in their purchase decisions and enhances the overall shopping experience by making it more engaging and interactive.

Also Read: How to scale voluntary carbon markets with DeFi and Web3

Virtual influencers are also gaining popularity in Southeast Asia, offering brands a unique way to connect with audiences. Anime live streamers, also known as vtubers, are next-generation influencers portraying as characters that have para-social interactions with their viewers and allow brands to create new targeted and interactive marketing campaigns. Some of these examples include Gawr Gura with more than 4.51 million YouTube subscribers, Hoshou Marine with over 3.43 million YouTube subscribers, and Ironmouse with 2.1 million Twitch followers.

Memecoins moving beyond novelty

Memecoins, once seen as humorous and highly speculative digital assets, have increasingly become one of the most flexible and profitable areas in the crypto industry. Despite their light-hearted beginnings, memecoins have grown in potential in terms of trading and other use cases as well.

In 2024, top-performing memecoins saw average returns exceeding 1,300%, driving market interest beyond their initial novelty. These digital currencies reached a US$60 billion market in Q1, with trading activity on decentralised exchanges (DEXs) reaching record highs.

While memecoins have been dismissed for being mostly speculative, the appeal lies in their community-driven, viral nature, such as the recent Moo Deng memecoin based on the same baby hippo that went viral on social media. It reached an all-time high market capitalisation of over US$300 million shortly after its launch on the Solana blockchain.

Also Read: Global Web3 companies on why Asia Pacific is the future of the industry

Beyond speculation, memecoins are now beginning to find more utility within the Bitcoin ecosystem. Thanks to advancements like the Taproot upgrade and the Runes protocol, Bitcoin now has the infrastructure to support more use cases, including minting and trading of memecoins.

These innovations allow Bitcoin to compete with Ethereum’s smart contract functionality while benefiting from its renowned network security. This means that memecoins can be integrated into areas such as Web3 gaming, where they serve as community-driven in-game currencies, a mechanism for player rewards, and also a means of decentralised governance.

One platform leveraging this potential is DeFi.Gold, a decentralised exchange and launchpad built on the Bitcoin blockchain. It pioneers the use of Runes-based tokens, such as its Schmeckle and Flurbo memecoins, utilised as in-game currency and a governance tool for a new Web3 gaming project.

As a DEX and launchpad, the platform provides the infrastructure for trading decentralised assets on the Bitcoin ecosystem, including memecoins, fungible tokens, and other digital assets. Earlier this month, DeFi.Gold secured US$2.2 million in seed funding from investors including Brian Rose, Walid Benothman, Mario Nawfal, and Cypher Capital, among others.

Additionally, Pump.fun, a memecoin-focused platform that generated $100 million in fees, highlights the growing demand for new meme token launches where anyone can participate. This success underscores the potential for these platforms to capture similar momentum in the expanding Bitcoin ecosystem.

Customer engagement is evolving faster than ever

Technology is redefining how brands engage with consumers, allowing for more personalised, immersive, and interactive experiences that go beyond traditional brand-customer interactions. From NFTs that create digital ownership to memecoins that are shaping new financial and governance ecosystems, brands now have powerful tools to engage tech-savvy audiences in more meaningful ways.

As Southeast Asia’s digital economy continues to grow, brands that embrace these technologies can create a dynamic and immersive consumer experience that resonates with a generation increasingly driven by digital connections and personalisation.

—

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 us on Instagram, Facebook, X, and LinkedIn to stay connected.

Image credit: Freepik

The post Redefining brand engagement: Innovations driving Southeast Asia’s digital economy appeared first on e27.