Deeptech gathers under a single terminological umbrella the technologies that are based on scientific breakthroughs and have the potential to be commercialised.

It covers the applications of artificial intelligence and machine learning, materials, advanced manufacturing, nanotechnology, drones and robotics, photonics and electronics, clean tech, and med tech. At their core, deeptech ventures are R&D intensive and multidisciplinary.

Deeptech is becoming global

Over the last decade, the volume of related financing with cross-border participation has increased sevenfold. But don’t make any mistakes.

It is only a fine-tuned and balanced mixture of scientific innovation, high talent density, and fast-growing industry that creates an ecosystem and an attractive location to scale deeptech startups and transform them into successful and sustainable businesses. The Bay Area, Boston, and Israel built their reputation of leading deeptech nodes by reuniting those three key pillars.

In this competitive paradigm, high talent density and diversity are paramount. The rhetoric of a global war for talent and the emergence of a new type of global meritocracy has mobilised many governments to change social and economic policies to attract and retain top talents.

Also Read: The reality of renewing your rent in Singapore

Singapore is no exception. In a small country without natural resources, human resources are the competitive advantage in the global marketplace, as the city-state jostles with the rest of the world for a slice of the lucrative pie in high-tech and high-value-adding service industries.

But instead of being overwhelmed by the tides of globalisation, the Singaporean government has always believed that it can anticipate and turn globalisation to its advantage. The city-state has continuously responded to the challenges of developing local talents, retaining them, and simultaneously welcoming and assimilating foreign professionals.

Early on, the country embraced the philosophy of attracting the best students and professors to craft world-class universities. Leveraging local job opportunities, many top global corporations set up their regional headquarters in Singapore, attracted by the general quality of the infrastructures, the solid foundations of the legal system, the country’s openness to international business as well as the cosmopolitan flavour of the city.

The Singaporean financial and technology ecosystem is now globally recognised. Foreign talent is not only an economic capital but also a symbolic capital that signifies that the pace of Singapore’s economic engine is a notch above others.

When it comes to deeptech, however, many of the best talents have contributed to others’ economies over the last decades instead of choosing Singapore first-hand. It is a facet of globalisation, enhanced regionalisation and industrial attractiveness that the city-state reflects and addresses.

While consumer tech, fintech and software-driven startups still largely dominate the local entrepreneurial landscape, deeptech has recently gained prominence, boosted by elite universities, a robust public stimulus, and the efficient ecosystem support of Singaporean governmental agencies.

Singapore is redefining the deeptech scene

Singapore is keen on refining a new taxonomy of roles, skills and aptitudes dedicated to deeptech. This valuable approach connects industrial strategy and operating model to people and skill requirements, which can be used to source and develop talent within and outside the country.

Thriving ecosystems do rely on future-proof approaches to workforce planning for talents. In the case of deeptech, far more than financial investments, knowledge, data, skills, expertise, contacts, and market access are all currencies that link ecosystem players.

Today, deeptech entrepreneurs in Singapore often find themselves in unfamiliar territory, while carving out CXO roles is complex. More high-level C-level executives and seasoned entrepreneurs will be key to having the ecosystem thrive.

Also Read: Unlocking deeptech for sustainable development: SDTA launches revamped venture building programme

Bringing a solid experience in deep science prototyping, pre-industrialisation and early industrialisation, those will be responsible for steering new ventures in the right direction, connecting projects with global B2B networks.

Obviously, the construction of business ecosystems is not new, but deeptech ecosystems are nascent and operating in emerging technologies and industries. Deep technologies can affect entire value and supply chains, requiring a different playbook to analyse the stakeholders’ interdependencies and value creation models.

Hard tech startups’ development cycles are rooted in the multi-stakeholder process of transitioning technology from a research lab to the market, differentiating them from digital ventures. As new commercialisation models emerge, Singaporean research institutions are reinventing their approaches to technology transfer and existing processes, creating new entry points for entrepreneurs and investors.

Final thoughts

The rise of these inspiring deeptech entrepreneurs and the ecosystem around them is one of the more exciting business developments of our time — and like other such developments, its impact will be felt far beyond the business itself. Obviously, not every society and city will succeed in this global competition for deeptech talents.

But the ecosystems that do will be those that look forward and look for ways of creating opportunities, new opportunities, for their populations. Regularly recognised as one of the top global nations regarding innovation capabilities, Singapore is well equipped to become one of these leading scenes in the years to come.

—

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 June 9, 2023

The post Unleashing the power: The fierce talent battle in deeptech innovations appeared first on e27.

As the world moves toward a cashless society, the digital payments revolution is reshaping how businesses and consumers interact. Southeast Asia (SEA), with its digital economy projected to hit US$100 billion and its young, tech-savvy population, stands at the forefront of this transformation.

By 2030, SEA’s consumer base is expected to grow to 623 million, becoming the fourth-largest economy worldwide. This demographic shift, coupled with increasing digital adoption, has created an ideal environment for the growth of digital payment solutions.

Yet, for these services to reach their full potential, payment service providers must prioritise accessibility, ease of use, affordability, and trustworthiness. Understanding these factors—and the broader global trends reshaping the payments industry—will allow businesses to adapt and thrive in an ever-evolving digital market.

The growing importance of digital payments for local and global users

Re-globalisation and the rise of digital financial services, such as digital wallets, are among the drivers of the digital economy’s growth. The world is generally moving towards re-globalisation, which has helped emerging markets step into the spotlight as global trade and digital commerce become more inclusive. Countries in Southeast Asia that were previously underserved or had underdeveloped payment infrastructures are now playing an increasingly important role in the global economy.

Simultaneously, domestic payment schemes ((like Indonesia’s DANA e-wallet)) have taken off in Southeast Asia over the past two or three years, with most being spearheaded by government initiatives such as unified QR payment codes to boost financial inclusion and reduce dependency on international payment systems. Within the past few months alone, payment systems in Vietnam, Cambodia, and Malaysia have announced new linkages to enhance cross-border capabilities. The rationale for developing local payment networks is to boost financial inclusion within the country as well as reduce dependency on international payment systems.

Also Read: Navigating fintech innovation: The role of regulatory sandboxes in APAC

In a globally connected economy, businesses expanding into new markets need flexible, seamless digital payment solutions to cater to local and international users. Cross-border transactions, once complex and costly due to currency conversion and regulatory compliance, are now simpler through platforms designed for real-time payments.

Challenges in implementing digital payment systems

As digital payments grow, so does the risk of cybercrime.  SEA has witnessed a significant increase in online scams, with companies in the regional reporting a 28 per cent rise in cyber threats. Cybercriminals are targeting digital transactions at an unprecedented rate, highlighting the urgent need for robust cybersecurity measures.

Payment platforms must employ advanced security protocols, such as biometric authentication and encryption, to safeguard against fraud. These measures not only protect users but also build trust, a critical factor for driving further adoption of cashless solutions.

Digital payments often span multiple jurisdictions, each with its regulatory requirements. Ensuring compliance across borders can be complex, and businesses must navigate these intricacies without compromising security or efficiency. Strong compliance frameworks within payment platforms allow for seamless cross-border transactions, ensuring that businesses operate within the law while maintaining smooth payment experiences for their customers.

To ensure seamless and compliant payment processing, businesses must prioritise a payment service provider with strong local payment capabilities, encompassing licenses, comprehensive payment method support, and in-depth local expertise.

Addressing these challenges requires a robust digital payment infrastructure that integrates advanced security and compliance features, creating a system that is resilient and capable of supporting sustainable growth.

Integrating value added services to enhance core competitiveness

Many companies expanding into new markets face challenges in navigating the local landscape. These challenges include understanding market dynamics, competitive landscapes, and complex regulatory environments, including entity setup, data privacy, and regulatory bodies. The need for a reliable payment partner becomes crucial.

Also Read: Innovating for impact: A better solution for household water treatment

To provide comprehensive solutions for businesses venturing into global markets, cross-border payment companies can expand their offerings beyond core payment services. By integrating value-added services such as risk management, foreign exchange (FX) management, payment marketing, and finance and tax support, these can empower their clients to navigate the complexities of emerging markets with ease.

Given the current global economic uncertainties, keeping a close eye on foreign exchange and risk management are critical especially in emerging markets. The heightened volatility of exchange rates presents a substantial hurdle for businesses. For example, the ongoing depreciation of the Rupiah in 2024, driven by geopolitical tensions and the strength of the US dollar, has created a challenging operating environment for businesses.

To address these challenges, payment platforms should offer robust exchange rate solutions to help clients mitigate potential losses arising from fluctuations. By providing regular market updates and accurate currency forecasts, these platforms can empower businesses to assess risks and implement proactive strategies to safeguard their financial health.

Meanwhile, payment platforms can proactively assess risks, classify preferences, and implement tailored risk mitigation strategies for different industry clients. PayerMax, for example, employs a robust anti-fraud system that operates across the entire transaction lifecycle, from initiation to completion.

This system leverages advanced AI and data analytics to identify and mitigate fraudulent activities, particularly in emerging markets prone to black market operations. By utilising sophisticated correlation analysis techniques, the payment platform can accurately pinpoint and control risks, safeguarding both businesses and consumers.

As businesses embrace the cashless revolution, secure, scalable, and flexible payment infrastructures will be key to staying competitive in the global digital economy. Integrating advanced technologies, maintaining compliance, and offering a seamless user experience will position businesses for success in the future of digital payments.

By investing in adaptable and trustworthy payment solutions, businesses in SEA and beyond can confidently navigate the complexities of the cashless economy and unlock new opportunities in an increasingly digital world.

—

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 courtesy: Canva Pro

The post Navigating the cashless revolution: The future of digital payments and cross-border transactions appeared first on e27.