Despite turbulence in the crypto space, interest in blockchain technology and the belief that CBDCs are set to be the foundation of the future global monetary system are at an all-time high.

From China to the European Union (EU), governments worldwide are investing increased amounts of resources into launching their own CBDCs in the near future. In fact, there has been resounding agreement from leading financial institutions which anticipate that CBDCs are set to revolutionise money.

The future of global economy

Over 90 per cent of central banks are exploring ways to incorporate CBDCs into their monetary systems. A recent report by the Bank for International Settlements (BIS) even highlighted the structural flaws in cryptocurrencies that make CBDCs a more ideal and viable option.

According to the BIS, CBDCs can “meld new technological capabilities”, which simultaneously removes the associated risks related to unregulated intermediaries used in cryptocurrencies. At the same time, CBDCs can still perform all the features of cryptocurrencies like programmability and tokenisation. 

Beyond safer, faster and cheaper payments, CBDCs have the potential to bring new innovations to the fore and empower transformational change at the industry level, benefitting both institutions and retail consumers.

In a joint report led by the BIS, International Monetary Fund (IMF), and World Bank for the upcoming G20, CBDCs represent a fundamental shift for global cross-border payments as it enables instant cross-border settlements across time zones and drives payment diversity. This will go a long way to create a more vibrant, resilient and efficient payments ecosystem and disrupt the existing landscape where incumbents dominate the field. 

Global associations such as the BIS, IMF and World Bank are not the only ones doing research and experimentation in CBDCs. The CBDC global race is heating up at a regional and national level too, as central banks initiate their own experiments.

Also Read: Could China’s CBDC threaten decentralised cryptocurrencies?

In Asia, we are seeing Singapore leading the region as its Monetary Authority of Singapore (MAS) embarked on milestone collaborative initiatives, from Project Ubin to Project Dunbar, a follow-up to its earlier project, which is now exploring the viability of multi-CBDCs in global cross-border payments jointly with BIS, Bank Negara Malaysia (BNM), Responsible Business Alliance (RBA) and South African Reserve Bank (SARB).

CBDCs and its many benefits

The benefits of CBDCs do not simply stop at cross-border payments. Domestic wholesale payments stand to benefit from CBDCs through the introduction of Delivery vs Payment (DvP) and atomic settlements of digital assets.

On a global scale, securities settlement processes worldwide have evolved at different speeds due to various reasons resulting in market inefficiencies. This has led to the acceptance and reliance on a delay of 2 days (T+2) to conclude DvP processes.

However, with the convergence of interest in achieving shorter post-trade settlements and the need to source liquidity and align financial records, market participants have been actively working towards a move to T+1 post-trade settlements. 

Already at the forefront of finance and technology, R3 recently expanded on its partnership portfolio with their latest involvement in Project Ion, a significant platform led by the Depository Trust & Clearing Corporation (DTCC) to realise .

T+0 settlement cycle as well as instant finality in securities settlement. DTCC’s Project Ion will leverage R3’s flagship DLT product, Corda, to enable resilient, secure and scalable settlement service to clients worldwide. 

The materialisation of the T+0 concept is already within sight with initiatives such as these, but CBDCs play a significant role in accelerating this movement as CBDCs will ultimately allow financial institutions to enjoy improved efficiency for cross-border payments, 24/7 access to payment systems and the potential for a reduction in settlement and counterparty risks. 

Beyond securities settlements, CBDCs can potentially create social impact as it promotes greater financial and digital inclusion through a universal interoperable legal tender payment instrument.  Innovations like offline CBDCs can even work similarly to debit and credit cards which creates an innovative way to reframe the notion of money for the average retail user.

One functional option for CBDCs, which is still being explored, is its programmability for retail use. This means that CBDCs can be designed and programmed for specific uses, which differentiate them from fiat or commercial money.

Also Read: How Web3 will revolutionise borderless banking in Southeast Asia

The potential is tremendous as it will likely open up a whole range of financial services for retail users. As IMF Managing Director, Kristialina Georgieva proclaimed, “the history of money is entering a new chapter” indeed.

Leading countries at the forefront of introducing CBDCs

It is no surprise then that many countries in Asia are actively researching, experimenting and implementing CBDCs to enhance payment systems. Most recently, the Asian Development Bank (ADB) introduced its two-phased project that will serve as a platform to bring central banks and central securities depositories (CSDs) from across the Association of Southeast Asian Nations (ASEAN) and the Republic of China, Japan, and the Republic of Korea together to facilitate associated discussions in the Cross-Border Settlement Infrastructure Forum (CSIF). 

This is in addition to the ongoing Project Dunbar, a collaboration between the MAS, BIS, Reserve Bank of Australia (RBA), South African Reserve Bank (SARB) and Bank Negara Malaysia (BNM), which is exploring the use of multi-CBDCs in the clearing and settlement of payments and securities as well as  Project Inthanon-LionRock, an initiative between the Bank of Thailand and Hong Kong which has since expanded to include the UAE and China to become a multi-CBDC project in 2021.

One thing is clear from all these initiatives: central banks all around the world are recognising the viability of CBDCs in the payments ecosystem, and they are ready to put in the necessary legwork to make CBDCs the future of money.

Of the advancements made so far, it is significant to see so many emerging economies already looking to launch their own CBDCs. These include Cambodia’s launch of Project Bakong, co-developed by a Japanese fintech company in 2020; Nigeria’s eNaira is issued by the Central Bank of Nigeria (CBN), although this is currently encountering low demand challenges from merchants due to a scarcity of users and a lack of user knowledge in rural areas. 

The race is on, and as countries such as China launch the e-CNY and markets such as Thailand and Hong Kong double down on their research efforts in the digital currency space, the question isn’t who will be the first to implement CBDCs nationally but rather: who will get it right?

From The U.S Treasury to the European Central Bank, governments and central banks worldwide have launched working groups and collaborated on projects to identify best practices and make recommendations for the most efficient path forward. It is also becoming imperative that industry experts are involved to ensure that the path for implementation is smooth and sustainable. 

Many industry players are well-positioned to contribute their expertise and combine the principles of traditional finance with blockchain technology to produce groundbreaking and innovative solutions to support ongoing regional and government-led initiatives. With the knowledge of the frameworks and rules that guide the world of traditional finance, these players have been at the forefront of setting industry best practices and building new frameworks to advance CBDCs in the region.

As a leader in distributed software and enterprise technology for regulated industries, R3 plays an active role in providing advisory services to central banks across APAC, which includes the Bank of Thailand, which has been in partnership with R3 since 2020, the Hong Kong Monetary Authority (HKMA), the MAS and RBA.

This is in tandem with its ongoing work with regional institutions such as the ADB.  R3 has also been building a resource base on CBDC development which spans white papers, toolkits such as its  Digital Currency Accelerator that is powered by Corda, and a digital currencies hub to cover the latest in the industry. 

Final thoughts

The global CBDC race is only in its infancy. Though many have already launched their CBDCs, there is still some way to go before we see worldwide implementation. The onus now falls on both private and public entities to work in partnership with each other to shape the future of money and the global economy.

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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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Image credit:  Canva Pro

This article was first September 5, 2022

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In today’s rapidly evolving business landscape, leaders are tasked with spearheading innovation and navigating the complexities of AI adoption. As we strive to stay at the forefront of technological advancements, we must take a moment to reflect on our own mental well-being—and that of our teams.

The past few decades have witnessed wave after wave of technological evolution, with AI being the latest trend that we’ve relentlessly pursued. But amidst this chase, we often forget to ask ourselves the most fundamental question: Why are we adopting AI, and is it truly benefiting us? Don’t get me wrong, I love AI and am actively adopting it myself. However, it’s crucial for us as leaders to be clear on the “why.” Is it merely because AI is the latest buzzword, a trending topic, or a directive from the top? Or do we know exactly how AI can help us achieve our strategic goals and optimise our operations?

Our unwavering focus on strategic goals and operational demands can unintentionally obscure our view of the emotional landscape within our organisations. The constant pursuit of the latest technologies can leave our teams feeling stressed and fatigued, with little time to process and adapt to change. This constant pressure can also leave leaders in a perpetual “stress mode,” like trying to drive a car in seventh gear while the gearbox is stuck in fourth—a stressful and unsustainable situation for everyone involved.

Also Read: 3 ways AI technology can help startups save money

To build thriving teams, we must create a supportive environment where individuals feel heard, valued, and empowered. After all, a strong organisational culture is built on a foundation of well-being. By fostering a culture that prioritises mental health and well-being alongside innovation and productivity, we can create a more balanced and sustainable future for ourselves and our teams.

Technology, when harnessed effectively, can be a powerful asset to our organisations—but it’s up to us to ensure that it serves our needs and complements our human potential. Let’s not allow the allure of technology to overshadow the very people who form the backbone of our organisations.

Embracing AI and other technological advancements doesn’t have to come at the expense of our well-being and sanity. It’s possible to innovate and adopt new technologies while simultaneously prioritising the mental health and well-being of our teams.

If you find yourself grappling with the challenges of leading amidst AI adoption, don’t hesitate to reach out. Remember that you’re not alone, and we can all benefit from sharing our experiences and insights as we navigate this complex and ever-evolving landscape together.

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ChatGPT has become a household name in Singapore. Figures also attest to this: Singapore’s number of weekly active ChatGPT users has doubled since the beginning of 2024. Singaporeans are some of the highest per capita users of ChatGPT worldwide. Its parent, OpenAI, has taken note of this and recently established a presence in the island nation. It will open an office later this year.

What does OpenAI’s Singapore expansion mean for the local startup ecosystem? How do you see it affect the ecosystem, particularly regarding talent acquisition and innovation?

We spoke with several startups, VCs, and AI experts in Singapore. Below are their comments and insights:

Dr Sze Tiam Lin, Senior Licensing Advisor at the Singapore Management University’s Institute of Innovation and Entrepreneurship

OpenAI’s presence will increase the competition for AI talent acquisition in Singapore, but it will also draw more foreign talents and startups and drive innovation in generative AI applications. It can create a competitive environment for local startups.

This can lead to an influx of skilled professionals who may start their own ventures, bringing their domain expertise to create more startups.

Accordingly, OpenAI’s advanced research and tools can inspire local startups to innovate. Access to cutting-edge AI models and frameworks can help entrepreneurs develop unique solutions tailored to regional needs.

There may be more opportunities for collaboration between startups and OpenAI, leading to partnerships that could drive product development and market entry strategies. It may also boost investor confidence in the Southeast Asian tech ecosystem. Investors might be more willing to fund AI-focused startups, knowing that a major player like OpenAI is validating the region’s potential.

Mauro Sauco, co-founder and CTO, Transparently.AI (a provider of AI-powered accounting manipulation and fraud detection solutions)

OpenAI’s move signifies a pivotal moment in our AI narrative. It is the large language model (LLM) standard and will bring a reputational benefit that aligns with and reinforces our National AI Strategy. It will also bring more interest and attention to AI startups in this city, which is good for the community.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

It’s still too early to say how OpenAI’s operations will unfold in Singapore. Will it be just for sales and growth, or will they build a development hub? If it plans to do engineering, then in the near term, it might soak up all the AI talent to begin with. In the long term, though, this should bring more talent to the region, enriching the ecosystem even more.

It also opens up new areas for potential future integrations and collaborations for startups working with NLP and LLMs, giving them more options to develop AI applications.

Kevin Quah, CEO of Tictag (which collects and annotates image, text, or audio datasets for the training of LLMs)

We see OpenAI’s presence in Singapore encouraging the adoption of AI within the region, speeding up innovation and growth in the space for industry players across the board.

It sends a strong signal that OpenAI believes that Singapore is the regional headquarters for innovation in AI, which will naturally spur both an increase in competition and more opportunities and benefit the ecosystem as a whole.

Jussi Salovaara, Managing Partner and Co-founder of Antler

It will be a double-edged sword for startups in Singapore.

On the one hand, it will elevate the local talent pool by attracting top-tier AI talent and providing startups with access to cutting-edge solutions. On the other, it will challenge resource-constrained startups to offer more compelling value propositions for the region. However, this concern is likely short-term.

In the long run, OpenAI’s presence will result in more talent being trained and developed locally. This expanded talent pool will ultimately benefit the broader ecosystem, with more skilled AI professionals available to both startups and established players alike.

Overall, it will have the potential to drive greater innovation. Startups that can effectively differentiate themselves and offer tailored and verticalised solutions will thrive, ultimately benefiting from the ecosystem’s growth and OpenAI’s influence.

OpenAI might even start acquiring or investing in local AI startups to strengthen its foothold in the Asia-Pacific, potentially sparking a wave of consolidation and offering startups more exit opportunities.

Christian Schneider, CEO and co-founder of Bluesheets (a financial data automation platform)

It is definitely a positive sign if some of the largest (if not the largest) players in the industry commit to the region by setting up an office. From our side (bluesheets.ai), we are mostly keen to connect with them and potentially have an avenue to get into meetings with them about upcoming updates/upgrades and potentially grow closer to the industry.

There will not be a competition issue at all; OpenAI is not competing with any local players in the region. We hope the tech giant is open to collaboration and going deeper into the ecosystem; from the news released, it seems the amount it is willing to invest in the region is fairly small and potentially not going to make a big difference.

Also Read: Bluesheets raises US$6.5M in Series A led by Illuminate Financial

OpenAI’s presence could allow startups in the region to get direct access to the latest solutions coming from them.

Kaniyet Rayev, CEO and co-founder of Boxo (a company that turns apps into super apps)

OpenAI’s opening in Singapore is exciting, but its impact depends on its approach. If it’s just a sales office, its effect on startups will be limited.

However, it could fuel real innovation if it brings in R&D or actively engages with the community—through mentorships, workshops, and collaboration with local startups.

The key will be if OpenAI looks beyond big enterprises and supports startups developing unique, localised AI applications, creating new possibilities for Southeast Asia.

Bhavana Ravindran, co-founder and CEO of Earlybird (AI-powered accounting solutions firm)

Singapore is a natural hub for companies aiming to expand in the broader Asia-Pacific region, and this development further underscores Singapore’s position as a technology leader poised to develop global-scale AI innovations. This gives a huge boost to Singapore-led AI innovation both qualitatively and quantitatively.

OpenAI’s commitment to investing in open data sets will result in richer datasets and, thereby, higher-quality model outputs contextualised for SEA diversity, language nuances, etc. This will contribute to more long-term adoption in the region and seed more innovative use cases. It will have a multiplier effect by promoting better talent and augmenting ecosystems around job creation, education, incubation programmes, etc.

Andrew Liu, co-founder of Momos (AI-powered customer platform for multi-location brands globally)

OpenAI’s presence is incredibly positive. It will help push the region forward and create more opportunities for startups. The fact that OpenAI is running its entire international business from Singapore means there will no doubt be a lot of focus on the region. We’ve been working with OpenAI since its inception, so we think this will only help us grow.

We hope OpenAI develops programmes like AWS does for startups. OpenAI and AI are evolving fast, so startups need to keep up.

Priyanka Mahulkar, founder and CEO, Gram Circle (an influencer marketing firm)

This is a fantastic opportunity for Singapore businesses to thrive, particularly SMEs that wish to integrate AI as an important capability for business growth. An increased number of AI-enabled startups will be set up in Singapore, attracting talent and encouraging innovation further.

Also Read: AI meets influence: Gram Circle’s solution for local brands and nano-influencers

For a company like ours that connects local brands to local influencers, we leverage OpenAI to help our customers reduce the time to launch new campaigns, enable influencer match and improve overall campaign effectiveness.

Yi Ming Ng, co-founder and CEO, Tribe Accelerator

OpenAI’s expansion here presents an exciting opportunity to attract global talent, amplify media and investor attention, and reinforce Singapore’s position as a strategic AI hub.

Seven of ten Singaporean businesses cite going through multiple barriers to tech adoption. Therefore, with OpenAI stepping foot into the market, it could help democratise AI technologies, making them more accessible. With direct access to cutting-edge AI tools and expertise, our local startups can certainly benefit from new collaborations, partnerships, and knowledge-sharing. This will drive innovation across sectors like healthcare and finance while helping startups scale their impact and compete globally.

Hank Sharma, Group CTO and co-founder of discovermarket (an insurtech startup)

OpenAI’s launch of ChatGPT in November 2022 has undeniably catapulted AI into the global spotlight. While the concept isn’t new, ChatGPT’s accessibility has democratised AI, making it a tangible part of everyday life. This has sparked a wave of innovation across various sectors, from business to education.

Like Microsoft’s pivotal role in the software revolution, OpenAI has emerged as a leading force in the AI landscape. Its decision to establish its Asia-Pacific hub in Singapore underscores the nation’s thriving startup ecosystem, which consistently ranks among the world’s top.

The local AI ecosystem is robust, boasting over 80 active AI research institutions, 150 AI R&D teams, and 1,100 AI startups. Local startups should leverage OpenAI’s presence to strengthen their own AI capabilities through partnerships and collaborations.

A recent report solidifies Singapore’s position as a global AI leader, ranking second only to the US. OpenAI’s presence not only enhances Singapore’s international standing but also aligns with its National AI Strategy 2.0, which aims to attract top AI talent and foster a vibrant AI ecosystem.

OpenAI’s entry into Singapore presents a wealth of opportunities for collaboration within the local AI ecosystem. Given the company’s technical expertise and experience, these partnerships can provide invaluable insights and knowledge.

Dorothea Koh, co-founder and CEO of Bot MD (an AI assistant for doctors)

OpenAI’s presence in Singapore will have a very positive impact on the Singapore startup ecosystem. AI/ML talent around the region will attract a lot of interest, which will be great for companies like us (Bot MD) looking to hire LLM/NLP talent in Singapore. The presence of OpenAI will also boost the expertise of the startup ecosystem through partnership programs to help reduce the cost of implementing LLMs at scale.

Juliana Lim, Executive Director (Talent & Community) at SGInnovate 

OpenAI’s arrival, like many other global players, is a testament to Singapore’s position as a regional hub for innovation and emerging technologies. In many ways, the adage “you are the company you keep” holds true.

These global pioneers in Singapore offer local talent exposure to different and innovative ways of learning and approaching new technologies from the very best. This goes beyond developing technical skills and fosters entrepreneurial perspectives, which are vital for any startup community.

While this may mean greater competition for talent, healthy competition is an essential contributor to the vibrancy of Singapore’s AI space. In response, this will ensure that our startups become more agile and responsive while providing local talent access to a wider range of opportunities and better-paying jobs.

As ecosystem stewards, we need to focus on creating opportunities for our talent to remain connected to the local ecosystem and creating a virtuous cycle of mentorship and skill exchange.

Mudasser Iqbal, founder and CEO of TeamSolve

OpenAI’s presence in Singapore is a double-edged sword for startups. On the one hand, it may make talent acquisition more challenging, as a global player like OpenAI can offer competitive compensation that young startups may find difficult to match.

However, the arrival of such a significant player will also enhance the local talent pool. As the ecosystem matures, we expect to see more skilled professionals entering the market, offering a broader selection of talent for startups to tap into. OpenAI’s presence could foster innovation by creating an environment where startups can collaborate, learn, and grow alongside top-tier talent and cutting-edge AI technology.

The post AI gold rush: How OpenAI’s Singapore expansion could reshape the startup ecosystem appeared first on e27.

Dear reader,

The simultaneous layoffs at One Championship and Love Bonito highlight the challenging economic climate that even successful Singapore-based companies face today.

While both companies have shown promise, with One Championship nearing profitability and Love Bonito expanding its global footprint, external pressures are proving too difficult to ignore. The macroeconomic environment, particularly rising costs and investor demands for immediate profitability, has forced these organizations to implement difficult cost-cutting measures.

One Championship, valued at US$1.3 billion, is striving to balance its growth in international markets like the US and the Middle East with profitability expectations, while Love Bonito, despite securing significant funding in recent years, faces similar pressures. These layoffs underscore the delicate balance between growth and financial sustainability in today’s market.

For employees, however, the human toll of these layoffs is undeniable. Though both companies offer severance packages and career transition support, the emotional and financial impact of such changes is significant.

In the broader business landscape, these layoffs reflect a trend of companies recalibrating to survive in a more competitive, profitability-focused era, especially as investor sentiment shifts in response to the unpredictable global economy.

Sainul,
Editor.

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NEWS & VIEWS

Love Bonito lays off 29, including 14 in Singapore
Originally a blogshop, Love Bonito secured US$50 million in funding in 2021 to advance its market expansion plans, specifically exploring entry into the United States.

One Championship cuts dozens of staff in push for profitability
The strategy is to bring the company to profitability; In an internal email to staff, CEO Chatri Sityodtong said the sports promoter was “on the verge” of profitability on the back of “record revenues and cost efficiencies” and had strong viewership numbers.

Marc Benioff warns that AI, while useful, is overhyped and partly blames Microsoft
Benioff had negative things to say in particular about Microsoft Copilot’s accuracy and usefulness; He even compared Copilot to Clippy, Microsoft’s widely panned 1990s talking paperclip cartoon that was supposed to be an assistant to Microsoft Office users.

Singapore startup funding dips 26% in Q3 2024 amid global economic challenges
In Q3, late-stage investment rose 48% to US$80M from US$53.9M in Q2 2024, whereas early-stage funding fell 8 per cent to US$237M; No US$100 million+ rounds were recorded in Q3 2024 in Singapore.

Q3 fintech funding slips in SEA: Early-stage deals offer hope amid market slowdown
Late-stage fintech investment saw a steep 72 per cent decline, dropping to US$73 million in Q3 2024, down from US$263 million in Q2 2024.

Khazanah unveils strategic initiatives to elevate Malaysia’s VC landscape
Khazanah’s initiatives are the Emerging Fund Managers’ Programme and the Regional Fund Managers’ Initiative under the National Fund of Funds; These initiatives follow Khazanah’s acquisition of MAVCAP and Penjana Kapital in July this year.

Malaysia EV market slows amid consumer worries over charging docks, maintenance costs
Consumers remain cautious and weigh the resale value of EVs (57%), access to renewable energy for charging their EVs (51%), and ongoing battery maintenance expenses (41%).

Philippines leads mobile fintech app adoption in SEA: Study
The penetration is expected to grow to 60% by 2030, with the highest levels observed in the Philippines (72%), Indonesia (64%), and Malaysia (61%).

Bintang Capital Partners launches US$47M gender lens Semiconductor Impact Fund
The fund is designed to invest in high-potential growth-stage semiconductor companies in Malaysia, with a clear focus on environmental and social impact.

Malaysia’s online crime cases rise 35.5% in 2023; e-commerce crime accounts for 33.2%
This was followed by telecommunications crime (30%), non-existent investments (15.6%), non-existent loans (12.3%), e-finance (6.1%) and love scam (2.7%).

Biofourmis founder emerges with new healthtech startup
OutcomesAI, founded by Kuldeep Singh Rajput, has built a multi-modal AI model, Glia, which can integrate information from images, audio and video to build a more accurate model; It is an ensemble of LLMs and large multi-modal models geared for healthcare.

India’s central bank orders Sachin Bansal’s Navi to halt loans
The Reserve Bank of India said the firm violated rules on pricing, income assessment, and asset classification; This action follows months of warnings about responsible lending practices, it added.

FEATURES & INTERVIEWS

AI gold rush: How OpenAI’s Singapore expansion could reshape the startup ecosystem
OpenAI’s presence is incredibly positive; it will help push the region forward and create more opportunities for startups.

FROM THE ARCHIVES

What startups need to know about Claims Code, the new rulebook for making credible climate claims
The Claims Code is one way for startups to contribute to the goals of the Paris Agreement by taking additional mitigation measures.

Evercomm wants to pave the way for corporate decarbonisation success
In 2024, Evercomm is looking forward to expanding to the Middle East and Europe, after winning an award at the COP28.

What is left behind in our conversation on climate change
We focus on startups and the solutions that they build to solve climate change; But there is a stakeholder that we have been missing out.

Muuse wants to eliminate single-use containers in Singapore’s thriving F&B scene
In this project, Muuse received support from the SG Eco Fund. It is also expected to launch a full commercial partnership in 2024.

How SWAP Energy aims to promote EV use in Indonesia through the advantages of battery-swapping
SWAP Energy builds battery swapping infrastructure with more than 400 swap stations already available in Greater Jakarta Area and Bali.

Unlocking green fintech prosperity in Asia: Navigating the top 4 challenges
Despite the ongoing ‘funding winter’ faced by global startups, the trajectory of development for green fintech has shown strong momentum.

Some lessons on how to fulfil the climate tech promise
When it comes to promoting climate tech investment, there is a need for investors to play the long term game.

Propelling SG businesses towards sustainable future: How to inspire emissions plan creation
There are several steps to encourage businesses to develop emission plan, starting with involving CFOs and finance teams.

Unveiling the eco gender gap: Essential insights for a sustainable future
Eco gender gap is when solutions to tackle climate change seem to be geared only toward women. How should businesses deal with this?

Why sustainable power starts with data
Global power companies use data to determine where to allocate their budget for new projects and predict which assets are most likely to fail.

THOUGHT LEADERSHIP

Strategies for Singaporean businesses to thrive in uncertainty — Part 1
Singaporean businesses must adapt to a rapidly changing market by prioritising agility, innovation, and strategic partnerships.

Human-driven interaction in an AI-driven world
There is a fine balance that needs to be struck between the magic of AI and the wonder of human centred innovation.

Cybersecurity in Asia: Trending toward a safer digital future
Cybersecurity in Asia has shifted from just being a protective measure to something much bigger—anticipating what’s next.

The Asian crypto tigers: Roaring into the future of digital currency in Eastern Asia
As CEO of a major cryptocurrency exchange, I believe CEXes will remain key in bringing the next billion users to crypto.

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Image Credit: 123RF.

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While Taiwan is advanced in the semiconductor and hardware industries, it lags behind countries like Singapore and South Korea when it comes to software development, according to Taiwan’s Minister of Economic Affairs Kuo Jyh-hue.

Taiwan is making tremendous efforts to bridge this gap, he said during Thursday’s opening ceremony of the Taiwan Innotech Expo at the Taipei World Trade Center Hall 1.

Also Read: AI gold rush: How OpenAI’s Singapore expansion could reshape the startup ecosystem

“Taiwan has the advantage of being at the forefront of the development of artificial intelligence (AI) and semiconductors. We need to catch up on and aim to improve the software sector. By putting efforts by different departments of the government, we can make the country better,” he added.

“We should also provide opportunities for different countries to communicate better and share ideas with each other. Exhibitions like the Taiwan Innotech Expo are a good platform to facilitate such connections,” the minister explained.

The Innotech expo hosts many schools, startups, and SMEs (small and medium enterprises) from countries like South Korea, Japan, Singapore, Malaysia, and Indonesia that have showcased their products and innovations. “By facilitating this, we can encourage and push school and university students and SMEs to develop innovative products and bring their products to Taiwan to showcase to a global audience,” the Minister said.

The Taiwan Innotech Expo is jointly organised by 11 government departments and implemented by the Taiwan External Trade Development Council (TAITRA) and the Industrial Technology Research Institute (ITRI). The three-day exhibition demonstrates Taiwan’s outstanding competitiveness in global R&D and showcases over 1,200 innovative technologies by 431 exhibitors from 20 countries.

Also Read: 5 things to consider before launching a business in Taiwan

With 2024 being regarded as the year of AI applications, the expo has set up an “AI Theme Area” to let visitors explore smart communities and demonstrate how AI is reshaping future lifestyles. Meanwhile, the sustainability pavilion focuses on digital transformation, green energy, and circular & sustainability, showcasing how innovative technologies can lead humanity towards a net-zero emissions green future.

Quantum computing and sports tech are also the highlights of the event.

The opening ceremony was also attended by prominent figures, including the Minister of the National Science and Technology Council Chen-Wen Wu and representatives from various ministries.

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The writer is in Taiwan on an invitation from the organisers of the Innotech expo.

The post Minister Kuo: Taiwan must boost software innovation to stay competitive globally appeared first on e27.

Perhaps one of the most powerful yet under-appreciated levers in business is effective internal and external communication, which should be deeply integrated into the CEO agenda. Despite its pivotal role in shaping a company’s success, corporate communication is often relegated to tactical announcements rather than being recognised as a key strategic function. It is exceedingly rare for companies with poor communication practices to achieve significant market value, even when their underlying business generates substantial returns.

Aligning stakeholders through clear messaging

One key aspect of strategic communication is ensuring that multiple stakeholders — investors, customers, partners, employees — have a clear understanding of the company’s context, challenges, plans, and desired outcomes. Without this clarity, the company’s context may be misinterpreted, leading to potentially serious consequences based on incorrect assumptions.

Such risks arise when media, competitors, or other stakeholders inadvertently or deliberately shape the narrative without all the necessary information. By proactively articulating the company’s story, leadership ensures the focus remains on its vision and strategy, which helps unify the organisation and build investor confidence.

Strategic communication also plays a crucial role in building awareness that can attract new businesses, investors, or opportunities. Effectively executed, it enables a company to stand out in a crowded market and can be the critical factor in catching the eye of potential partners and stakeholders. Additionally, clear and compelling communication is vital in attracting and retaining top talent, as it fosters a transparent and engaging corporate culture that appeals to high-caliber professionals.

Also Read: Key to success: Digitising customer communication and investing in a multi-channel approach

Learning from exemplary communicators

Throughout my career, I have had the privilege of learning from exemplary communicators. My former chairman, Alex Hungate, is one of the best communicators I have encountered. His ability at airport service company SATS to help the entire organisation and external stakeholders recognise and value the company’s strengths was phenomenal, clarifying the company’s direction, the challenges it faced, and maintaining a path of immense credibility.

Additionally, I was fortunate to bring Rachel Konrad onto the TiNDLE Board after being impressed by her leadership in communications at Impossible Foods. Her extensive background includes working with notable leaders like Elon Musk at Tesla and Carlos Ghosn at Renault Nissan. Konrad’s diverse experiences have profoundly deepened my understanding of strategic communication.

From great communicators, I have come to recognise that my initial belief — that simply letting my work speak for itself was enough — was a somewhat narrow and naive misconception. Effective communication is more than operational necessity; it is a pivotal driver of success.

Communication as a driver of success

Clarity and honesty in communication are essential, particularly during times of transformation or uncertainty. Leaders who can articulate the ‘why’ behind their decisions foster a shared sense of purpose and direction, which is crucial for internal alignment and for building external relationships with partners, clients, and investors. This open dialogue not only strengthens credibility but also drives loyalty and motivates employees to align with the company’s goals.

Moreover, strategic communication is not merely reactive but a forward-looking function that builds momentum and resilience. By continuously refining the message and adapting it to different contexts, businesses can remain competitive and well-aligned for future challenges.

In essence, strategic communication transcends its traditional view as merely operational. It is a fundamental element of leadership and a pivotal driver of long-term growth and success. It’s about creating a unified vision, building strong relationships, and ultimately, ensuring the company’s success.

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Fintech investments in Southeast Asia declined 28 per cent in Q3 (July 01 to September 30) of 2024 to US$322 million from US$447.5 million raised in the previous quarter.

However, on a year-on-year basis, this marked an 8 per cent rise from US$299 million in Q3 2023.

The findings were released by global startup research platform Tracxn in its Geo Quarterly Report: SEA FinTech Q3 2024.

Also Read: South Asia, SEA rank high in potential for fintech lending in Asia: Study shows

The region’s fintech ecosystem experienced peak funding in Q3 2021 and steadily declined since, despite a brief recovery in Q4 2023.

However, Southeast Asia remains a prominent hub for fintech investments, accounting for 14.5 per cent of the total fintech funding across Asia. Notably, Singapore ranked third in the region for investments into this space.

Neha Singh, CEO and co-founder of Tracxn, said: “Southeast Asia’s landscape continues to be dynamic despite ongoing macroeconomic challenges. Although late-stage funding has taken a hit, it’s encouraging to see early-stage investments showing resilience. The region’s large consumer base and rapidly growing digital economy provide strong growth opportunities in the long term.”

Early-stage and seed funding remained bright spots in Q3 2024. Early-stage funding increased by 32 per cent to US$196 million from the previous quarter’s US$148 million, while seed-stage funding rose by 40 per cent to US$52 million from US$37.5 million in Q2 2024.

Late-stage funding, however, witnessed a steep 72 per cent decline, dropping to US$73 million in Q3 2024, down from US$263 million in Q2 2024. No US$100 million+ round were recorded in Q3, signalling challenges for more mature companies seeking large capital injections. Notable funding rounds in Q3 2024 included Superbank’s US$73.2 million Series C and Partior’s US$60 million Series B.

Despite the overall decline, payments, banking tech, and forex tech remained the top-performing segments in the space. The payments segment raised US$123 million in Q3 2024, although this was 44 per cent lower than the US$223 million raised in Q2 2024.

Banking tech saw a significant surge, raising US$80 million compared to just US$6 million in the previous quarter, while forex tech garnered US$60 million, marking a substantial improvement.

The number of acquisitions in this sector rose to seven in Q3 2024, up from five in Q2 2024.

Among cities, Singapore led with US$157.7 million in funding raised during Q3 2024, followed by Jakarta with US$103.2 million and Taguig with US$8.6 million.

Top investors in the space included 500 Global, East Ventures, and Y Combinator. Specifically, 500 Global, K300 Ventures and Antler dominated seed-stage investments, while Peak XV Partners, Temasek, and Valor Capital Group led early-stage funding rounds.

Also Read: Philippines leads mobile fintech app adoption in SEA: Study

“While the immediate outlook remains cautious, the overall optimism in Southeast Asia’s fintech sector continues to be bolstered by favourable long-term factors. Government initiatives, wide internet penetration, and a thriving digital economy will be crucial drivers of future growth,” Singh added.

Despite the current funding downturn, Tracxn remains optimistic about the region’s potential for long-term growth. SEA’s large consumer base, fast-growing digital economy, and favourable government policies make it a region to watch closely in the coming years.

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Image Credit: 123RF.

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In today’s dynamic and competitive business landscape, the only constant is change and uncertainty. Fortunately, Singapore has established itself as a global business hub, navigating the complexities of a rapidly changing world with agility and strategic foresight.  

However, amidst these uncertainties lie opportunities and challenges for innovation, adaptation, and sustainable growth. This is particularly true for business leaders and senior management, who face the pressing challenge of fostering growth and sustainability amidst a sense of the unknown, characterised by the BANI (Brittle, Anxious, Non-linear, and Incomprehensible) framework.  

To help businesses thrive in today’s dynamic landscape, this thought leadership piece will explore strategies to navigate uncertainties and achieve sustainable growth. Drawing insights from the IndSights Business Forum 2024, we will delve into key approaches tailored to empower Singaporean companies. 

In the first of our two-part series, we shall tackle the critical issue of manpower shortages and discuss how companies can leverage government support initiatives to unlock their growth potential. We will also list the relevant supporting schemes which Singapore businesses can leverage at the end of each section. 

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In software development, where change is the only constant, continuous learning isn’t just important—it’s essential. Technology evolves at a rapid pace, making it critical for developers and teams to stay updated on the latest tools, languages, and frameworks. However, fostering an environment where learning is not merely a task but a deeply ingrained habit can transform not just individuals but the entire culture of a team. A culture of learning can be the foundation for long-term growth and innovation.

Yet, building this culture isn’t always easy. Developers are often pressed for time, juggling multiple projects, deadlines, and ever-changing requirements. In such a fast-paced environment, how can you make learning a natural part of the workflow rather than something that feels forced or additional? In my experience, integrating learning into everyday interactions is key. By embedding learning into daily tasks and conversations, you create a space where growth happens organically, without feeling like another item on the to-do list.

Learning through everyday interactions

One simple yet effective approach I’ve found is to incorporate learning into routine interactions. For example, before my 1-1 meetings with team members, I often ask them to read a chapter from a book. It doesn’t have to be directly related to coding or technology—sometimes, it’s about leadership, problem-solving, or even creative thinking. The purpose is not just to build technical knowledge, but to encourage a broader mindset that fosters personal growth and development.

This approach has yielded surprising benefits. The discussions that follow these readings often go beyond the usual project updates and technical details. They open up new avenues of thought, introduce fresh perspectives, and lead to conversations that spark curiosity and inspiration. By regularly engaging with new ideas, the team becomes more attuned to learning as part of their everyday work, rather than something reserved for formal training sessions or courses.

The ripple effect of continuous learning

When learning becomes part of the routine, it leads to more than just personal development. It creates an environment where team members collaborate more openly, share new ideas, and tackle problems with creativity. I’ve seen teams become more connected, not just because they’re up-skilling, but because they’re sharing knowledge and challenging each other to grow.

Also Read: What are the basics of design thinking, and how to apply it?

The ripple effects of continuous learning are profound. Teams that prioritise learning tend to innovate faster. They are more adaptable in the face of challenges, more resilient when faced with setbacks, and more capable of finding novel solutions to difficult problems. In this kind of environment, learning doesn’t just happen in isolation. It becomes part of the fabric of how the team operates—building stronger bonds and a greater sense of shared purpose.

Beyond keeping up with tech trends

It’s tempting to think of continuous learning purely in terms of staying up to date with the latest programming languages, frameworks, or industry trends. While it’s true that technical skills are important, building a culture of learning goes far beyond that. It’s about fostering a sense of curiosity, encouraging collaboration, and promoting a growth mindset that drives innovation.

In software development, where technologies and methodologies change frequently, there’s often a focus on what’s new—new languages, new tools, new techniques. But a learning culture thrives when it focuses on more than just external change. It also looks inward, encouraging individuals to ask, “What can I learn from this situation? How can I approach this challenge differently?”

For instance, when team members are encouraged to learn about leadership, communication, or even other industries, they bring fresh insights to the table. These insights often translate into creative problem-solving and innovation. By fostering a holistic approach to learning, teams become more than just technically competent—they become versatile, adaptive, and capable of thinking outside the box.

How to foster a culture of learning

So, how can you start fostering this culture of learning within your own team? It doesn’t have to be complicated or time-consuming.

Here are some strategies that I’ve found effective over the years:

Start with small habits

The journey toward building a learning culture starts with small, manageable habits. Begin by suggesting that team members share an interesting article during a team meeting or dedicate a portion of a stand-up to discussing something they’ve recently learned. Over time, these small habits create a larger shift in how learning is perceived and prioritised.

Create a safe space for knowledge sharing

Encourage open discussions where learning can happen naturally. This can be during regular 1-1 meetings, casual lunch breaks, or even dedicated learning sessions. The key is to create an environment where team members feel comfortable sharing what they know and are open to learning from others. This not only spreads knowledge but builds trust and promotes collaboration.

Lead by example

As a leader, you need to walk the talk. Share your own learning journey—whether it’s a new coding language, a leadership book, or even a hobby that’s teaching you valuable lessons. Your willingness to learn and grow sets the tone for the rest of the team and shows that continuous improvement is something to be embraced, not feared.

Make time for learning

In the day-to-day rush of deadlines and deliverables, it can be easy to push learning aside. But if you want to build a culture of learning, you need to make time for it. Whether it’s setting aside an hour each week for team members to explore new tools or technologies, or hosting monthly “lunch and learn” sessions, ensure that there’s regular time for growth and skill development.

Also Read: Nurturing real-world design innovation in Singapore

Reward and celebrate learning wins

Recognising and celebrating learning achievements is a great way to reinforce the value of continuous growth. When someone applies a new technique or tool they’ve recently learned to solve a problem, take the time to acknowledge it. This encourages others to follow suit and shows that the organisation truly values learning.

Encourage cross-disciplinary learning

Sometimes, the best ideas come from outside one’s immediate area of expertise. Encourage team members to learn about topics outside of their core technical skills, such as design thinking, project management, or even customer service. Cross-disciplinary learning broadens their perspective and can lead to unexpected innovations.

The developer’s role in shaping a learning culture

As developers, we are uniquely positioned to lead the charge in creating and nurturing a culture of learning. The nature of our work places us at the forefront of technological change, but we can choose to go beyond simply responding to these changes. We can actively shape how we and our teams react by fostering a mindset of curiosity and continuous improvement.

By making learning a habitual part of our team dynamics, we create environments where both people and ideas can thrive. In doing so, we don’t just stay current with the latest trends—we drive innovation, inspire collaboration, and build resilient teams that are prepared to face the challenges of tomorrow.

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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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When asked about the prospect of quantum computers in Singapore and Southeast Asia (SEA), Horizon Quantum Computing Founder and CEO Dr Joe Fitzsimons believes in the possibility of having sufficient infrastructure to take the technology to the next level.

“At the moment, we are building out a facility to host quantum computers just next door to our office here. We will have a space to host up to three quantum computers. It’s just nearing completion, and we should have the first quantum computer up and running early next year,” he tells e27 in an interview.

“Obviously, we are a long way from Europe or the US. So, shipping things becomes a little bit more complicated. But generally, we have not had any difficulty with infrastructure.”

Horizon Quantum Computing is developing a new generation of programming tools to simplify and expedite the process of developing software for quantum computers.

Before founding the company in 2018, Dr Fitzsimons was an associate professor at the Singapore University of Technology and Design, where he led the Quantum Information and Theory group. He was also a principal investigator at the Centre for Quantum Technologies, contributing to theoretical computer science and physics through his research.

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Earlier in his career, he was a fellow of Merton College, Oxford, and a senior research fellow in the Materials Department at the University of Oxford. During this time, he co-invented universal blind quantum computing, which has since become recognised as an important enabling technology for securing cloud-based quantum computing.

Dr Fitzsimons holds a doctorate from the University of Oxford, where his research focused on quantum computing architectures, and a bachelor of science degree in theoretical physics from University College Dublin.

In this interview, he explains how quantum computing will play a big role in accelerating AI innovation in various industries, particularly in SEA. The following is an edited excerpt of the conversation:

Quantum computing is often described as a technology that will revolutionise various industries. How do you see it complementing or accelerating AI developments, especially in SEA?

The confluence of quantum computing and AI is very interesting, and I think it is likely to have a very large impact. However, it is not the first use of quantum computing. So, we know that you can use quantum computing to accelerate the calculations for quite a wide variety of machine learning models, which is important. Because, if you look at the bottleneck with training larger and larger models, as we go from GPT-4 to 4o and so on, the computational part that goes into training these models is enormous.

It is a limiting factor. If we can make it much easier and more energy-efficient to train these models, we cannot only make better models but also do it with a lot less.

Also Read: Global Microsoft outage demonstrates the need for DePIN computing

Now, getting there is challenging, as quantum computing is still pretty nascent. Quantum computers do not yet outperform conventional computers for any task of interest, but they are getting close to that regime.

When I say it will not be the first application of quantum computing, what I mean is that quantum machine learning, for the algorithms that we know, gives an advantage over existing classical models. They tend to need something called quantum random access memory. That is like a quantum version of the RAM in a conventional computer, which has not been demonstrated yet. So, we have not seen someone produce this kind of memory and put it in a quantum computer.

At the moment, they are just essentially large processors. So, that level of technological development still needs to happen if we want to see some of the benefits of machine learning.

There have been a lot of explorations of nearer-term quantum machine learning algorithms that natively exploit how quantum creators process information. But for those, it is far less certain whether there is going to be an impact or not; they may end up not performing as well as existing classical models. However, for many widely used models, we know you can accelerate them on a quantum computer, but it uses this kind of further term model where we need to have error corrected.

If you look at key sectors in Southeast Asia, such as healthcare, finance and logistics, what are the most promising quantum computing applications that could significantly impact these sectors?

Each of these is pretty prominently represented in quantum computing at the moment.

The most obvious examples are based on the fact that quantum computers can efficiently simulate chemistry. It is easy for quantum computers to simulate chemistry in a way that might be quite difficult for conventional computers, at least for some molecules. This includes not just simulating the molecule itself but also chemical reactions. For example, simulating the folding of proteins can be done very faithfully on a quantum computer.

Also Read: The new era of computing: Single board computers for home automation and AI

It opens up a path to start doing experiments much more in simulation rather than in the wet lab, without the problem of divergence between simulation and the wet lab experiment. This opens up ways to things such as drug discovery, as protein folding is relevant for conformal diseases such as Alzheimer’s.

If you move over to finance or logistics, you see a wide range of applications opening up again, particularly in finance. A very dominant computational problem is the Monte Carlo simulation.

Quantum computers are better at Monte Carlo simulations than conventional computers. You only need to simulate the square root of the number of situations you would need for a conventional computer to get the same amount of precision.

Some banks use a tremendous amount of computing power that can be significantly reduced by quantum computation or, equivalently, getting them down to something that can run much more quickly at much higher frequency. That gives you better insight into the overall risk profile and health system.

If we compare SEA to major tech hubs such as the US or Europe, what are the unique challenges and opportunities for quantum computing in this region?

The industry in the region is a little bit more conservative. I would say the US is probably the place where there is the greatest risk appetite in terms of the willingness to experiment with new technologies at an early stage.

Clearly, with a booming population in SEA, there is tremendous tech expansion in the region, so there is a lot of potential for quantum computing here. Singapore has been an early investor in quantum computing. They have had the Centre for Quantum Technologies for nearly 20 years.

Also Read: Silence Laboratories raises US$4.1M for privacy-preserving collaborative computing

So, there has been high-quality research in the region for quite a long period of time. At the moment, I would say, the industry is slightly slower in taking off in Singapore and SEA than in places such as the UK or the US. However, there are also advantages to starting a quantum computing company.

A company like ours is reliant on being able to attract talent, so it is important to have a skilled talent base. There is definitely academic expertise in the area, people who have trained locally or abroad and come back.

However, there are fewer direct competitors as there are only a few quantum computing companies in Singapore. For a company like us, we are also very, very reliant on trade secrets and IP. This means there is less leakage or less potential for leakage between companies. Whereas, if you’re based in Palo Alto or Berkeley, there are a lot of quantum computing companies, and people are moving between them.

What can the government and academic institutions in Singapore and SEA do to foster innovation in the field, especially in the area of talent?

There are different sides to what is needed in industry.

It is not enough to be an expert in quantum computing to actually turn that into a real technology; we also need exposure to a more engineering[—centric] mindset, which is sometimes at odds with the path people take in computing.

So, I came from theoretical physics. It is a somewhat different path, and the mindset can be different. The approach to tackling problems can be different, but if you are trying to create a new technology … then you also need to focus on good engineering practice and repeatability. These are things that are sometimes under-emphasised in academic efforts.

Also Read: Navigating spatial computing: Augmented, virtual, and mixed reality trends

What becomes important is not just people being exposed to the technology at an early stage. There are increasing courses at the undergraduate level that cover the basics of quantum computing. We have many people who come in with a reasonable level of understanding of what technology is. However, if we want to create a workforce in the area, it is important to expose people to what the industry is like during their training. Otherwise, it can be a bit of a shock to make the leap.

How do you see the trend shifting in Singapore and SEA in the next few years?

What I would say about quantum computing is that it started to move very quickly.

When IBM put its first one on the cloud, it was a five-qubit system in 2015 or 2016. Today, they have a 1,100 qubit system. So, the complexity of the devices is growing very, very quickly. Last month, we also saw the first full demonstration of quantum error correction coming out of Google.

Now, how quickly does that mean things will progress? It is difficult to say, but I would say that, within two to three years, we will be in the low noise regime for quantum computing, where the errors can be corrected to a good extent. So, the error rate will become one in a million instead of one in 100.

When we get there … there is a real chance to see meaningful advantages.

The difference we have between now and then, when the first conventional computers were emerging, is that we have the internet now, which means we can roll out this change. The adoption can be much, much quicker because you do not need to go install a computer at everyone’s office or something like that.

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Image Credit: Horizon Quantum

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