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The dovish inflection: Fed cuts, TikTok truce, and crypto crossroads set stage for market repricing

The Federal Reserve’s meeting on Tuesday and Wednesday stands out as the centerpiece, with widespread expectations that the central bank will deliver its first rate cut of the year, potentially by 25 or even 50 basis points, to support economic growth amid lingering inflation concerns.

This move aligns with a broader global trend where policymakers grapple with balancing growth and price stability. The Bank of England wraps up its deliberations on Thursday, likely holding rates steady at 4.0 per cent while signaling future adjustments based on incoming data.

Over in Japan, the Bank of Japan continues its gradual normalisation path, and the Bank of Canada faces similar pressures to ease if economic indicators weaken further. These meetings dominate the calendar, and traders watch closely for any hints of coordinated action that could ripple through currency markets and equity valuations. This synchronised focus on monetary policy reflects a maturing global economy that prioritises data-driven decisions over knee-jerk reactions, which bodes well for sustained risk appetite in the coming months.

Amid this backdrop, a breakthrough in US-China relations added fuel to the positive sentiment. Negotiators from both sides hammered out a framework agreement to restructure TikTok’s ownership, transferring control to a US-dominated entity while addressing national security worries that have loomed over the app for years. Treasury Secretary Scott Bessent confirmed the deal during talks in Spain, noting that President Trump and President Xi Jinping plan to make a direct call on Friday to iron out the final details.

This development marks a significant step in thawing trade tensions, as it ties into larger discussions on tariffs, technology transfers, and supply chain resilience. China acknowledged a basic consensus on the ownership shift, which could prevent an outright ban on TikTok in the US and open doors for similar resolutions in other contentious areas like semiconductors and electric vehicles.

Also Read: Saison Capital launches US$50M Onigiri fund to bridge global blockchain with Asia

From where I sit, this agreement signals pragmatic leadership from both leaders, who recognise that escalating disputes hurt businesses on all sides. It could pave the way for broader trade pacts, boosting investor confidence and potentially lifting export-oriented sectors in both economies. The market’s initial reaction underscores this, with shares of tech firms tied to social media and advertising perking up on the news.

Wall Street captured this upbeat mood right from the opening bell on Monday. The Dow Jones Industrial Average climbed 0.11 per cent, reflecting steady gains in blue-chip names like industrials and financials that stand to benefit from looser policy. The S&P 500 pushed higher by 0.47 percent.

In comparison, the Nasdaq Composite led the pack with a 0.94 percent advance, driven mainly by technology giants such as Apple and Nvidia, which continue to ride the wave of AI enthusiasm and anticipated lower borrowing costs. These record closes for the S&P and Nasdaq highlight the resilience of US equities, even as valuation concerns linger in some corners.

Tech stocks, in particular, thrived on the combination of the TikTok news, which alleviates regulatory overhangs, and the broader expectation of Fed easing that would reduce the cost of capital for growth-oriented companies. Investors rotated into these names, shrugging off minor profit-taking in overbought areas. I believe this performance sets a strong tone for the week, as any dovish tilt from the Fed could propel these indexes to new highs, though we must remain vigilant for any surprises in the dot plot or forward guidance that might temper the rally.

Fixed income markets told a complementary story, with US Treasury yields dipping slightly as participants bet on imminent rate relief. The benchmark 10-year Treasury note yield fell three basis points to settle at 4.03 per cent, while the two-year yield eased two basis points to 3.53 per cent, narrowing the yield curve inversion that has plagued markets for so long. This softening reflects bets that the Fed will act decisively to prevent a deeper slowdown, pulling longer-dated yields lower in anticipation of multiple cuts through year-end.

Also Read: DigiCert CEO: Quantum computing’s “ChatGPT moment” is coming

The curve’s steepening, with the 10-year minus two-year spread widening to 0.51 per cent, suggests growing comfort that recession risks are fading. These movements validate the market’s forward-looking nature, where bond traders often price in policy shifts before they occur, providing a buffer against volatility. Lower yields support equity valuations by making stocks more attractive relative to fixed income, and they ease mortgage rates, which could stimulate housing activity down the line. The US dollar followed suit, weakening against a basket of major currencies as the Dollar Index dropped 0.25 per cent to close at 97.30. This pullback stems from the softer yields and the prospect of a less hawkish Fed, which diminishes the greenback’s safe-haven appeal.

Meanwhile, gold seized the opportunity to shine, surging 1.1 per cent to reach US$3,680.80 per ounce, its strongest level in months. The metal benefits from the dollar’s retreat and the flight to quality ahead of policy uncertainty, with central banks worldwide adding to their reserves at a brisk pace. Brent crude oil also edged up 0.67 per cent to 67.44 dollars per barrel, as geopolitical tensions in Eastern Europe, including Ukrainian drone strikes on Russian refineries, raise supply disruption fears.

These commodity moves illustrate the interconnectedness of global risks, where energy security concerns amplify inflationary pressures that central banks must navigate. I see gold’s rally as particularly telling, not just a hedge against uncertainty but a bet on persistent loose policy that could erode fiat currencies over time.

Shifting to Asia, equities presented a mixed picture at the start of the week, building on Friday’s positive close but showing some divergence in early trading on Tuesday. Japan’s Nikkei index opened higher, supported by exporter gains from a weaker yen, while Australia’s ASX climbed on commodity strength. South Korea’s Kospi joined the uptrend, buoyed by semiconductor demand, though Hong Kong’s Hang Seng lagged slightly due to property sector woes.

Overall, the MSCI Asia-Pacific Index hovered near record territory, reflecting spillover from Wall Street’s strength and optimism around global growth. US equity futures pointed to a mixed open stateside, with Dow contracts down marginally while Nasdaq futures held flat, suggesting traders await Fed cues before committing fully.

Also Read: Forget China and the US–Japan is the true powerhouse of mobile game spending

In my assessment, Asia’s resilience demonstrates its decoupling from pure US dependency, with domestic factors such as China’s stimulus hints playing a larger role. This regional buoyancy could be sustained if central bank outcomes align with expectations, fostering cross-border capital flows.

Turning to the cryptocurrency space, Next Technology Holding Inc., traded under the ticker NXTT, made headlines by filing a US$500 million shelf registration with the SEC to issue common stock over time. The company explicitly stated that a portion of the proceeds would fund Bitcoin acquisitions, aligning with a growing trend among public firms to diversify into digital assets as a treasury reserve. This move follows similar strategies by companies such as MicroStrategy, which have seen their stock prices correlate closely with Bitcoin’s performance. NXTT’s announcement sparked an immediate reaction, with shares dropping nearly three per cent in after-hours trading, likely due to dilution fears from the potential stock issuance. However, management emphasized that Bitcoin remains central to their long-term strategy, viewing it as a superior store of value amid inflationary environments. The filing allows for flexibility in one or more offerings, giving the board discretion over timing and allocation.

From my perspective, this step by NXTT underscores the mainstreaming of corporate crypto adoption, where firms leverage public markets to build substantial holdings. While short-term volatility is inevitable, such initiatives could drive Bitcoin’s price higher by increasing institutional demand, especially if regulatory clarity improves under the current administration.

Ethereum’s narrative offers a contrasting yet intriguing angle, trading around US$4,520 on Monday after a 2.01 per cent decline that underperformed the broader crypto market’s 0.96 percent drop. Standard Chartered’s global head of digital asset research, Geoffrey Kendrick, argued in a recent note that digital asset treasuries focused on Ethereum hold the highest probability of long-term success compared to those piling into Bitcoin or Solana.

Kendrick points to Ethereum’s staking yields, which provide passive income streams that enhance sustainability for these corporate holders, unlike the more static holdings in Bitcoin. He warns of a potential shakeout among digital asset treasuries, where market capitalization compresses relative to net asset values, squeezing out weaker players. An mNAV above one indicates trading at a premium, signaling investor trust, but Ethereum’s ecosystem advantages, including layer-two scaling and DeFi dominance, position its treasuries for outperformance.

Also Read: AI at the core: Lazada shows how tech can supercharge sellers and shoppers

Kendrick maintains ambitious price targets, forecasting US$7,500 for Ethereum by year-end and US$25,000 by 2028, calling recent dips a prime entry point. I agree with this outlook, as Ethereum’s utility beyond mere speculation gives it an edge in a maturing crypto landscape, where yield generation becomes key for institutional viability.

Delving deeper into Ethereum’s challenges, the price breakdown below the US$4,500 support level triggered a cascade of stop-loss orders and invalidated the short-term bullish setup. The token slipped under the 100-hourly simple moving average and now tests the 50 per cent Fibonacci retracement at US$4,509.35. This technical fracture amplified selling pressure, with 24-hour trading volume spiking 41.34 per cent to US$39.26 dollars, confirming the bearish shift through heightened liquidity.

Algorithmic traders and leveraged positions exacerbated the move, leading to liquidations that fed the downward spiral. Looking ahead, a decisive close above US$4,509 might halt the bleeding and restore stability, but persistent failure could drag prices toward the 78.6 per cent Fibonacci level at US$4,255, opening the door to further downside. These patterns remind us that crypto markets remain prone to sharp reversals, driven by sentiment and technical triggers more than fundamentals in the near term. Ethereum’s robust mid-term prospects, anchored in network upgrades like Dencun and growing adoption in real-world assets, suggest this dip represents a temporary setback rather than a trend reversal.

Compounding the technical woes, Ethereum exchange-traded funds experienced significant outflows, with US$152.3 million pulled on August 1, marking the largest single-day exit in recent weeks according to SoSoValue data. BlackRock’s ETHA fund bore the brunt of these withdrawals, erasing some of the bullish momentum from July’s US$5.43 billion in net inflows.

This profit-taking by institutions highlights short-term caution, even as Ethereum boasts a 79 per cent gain over the past 90 days. Despite the outflows, ETF issuers collectively hold ETH6.3 million, valued at around US$26 billion, which speaks to underlying long-term conviction. Broader stablecoin supply hit all-time highs, indicating ample liquidity in the ecosystem. Still, it has not yet translated into aggressive Ethereum buying, possibly due to awaiting clearer regulatory signals or Fed outcomes. In my estimation, these ETF flows reveal the growing pains of crypto’s integration into traditional finance, where volatility tests investor resolve. However, the sheer scale of prior inflows demonstrates Ethereum’s appeal as a portfolio diversifier, and I expect renewed accumulation once macroeconomic headwinds ease.

Also Read: S&P at record highs, Bitcoin at US$115K: Why this convergence signals a new market era

Ethereum’s story intersects with larger themes in the digital asset world, where corporate treasuries, such as NXTT’s Bitcoin pivot and Standard Chartered’s Ethereum endorsement, highlight diverging strategies. Bitcoin remains the undisputed king for its simplicity and scarcity, but Ethereum’s yield-bearing features could attract more sophisticated players seeking returns beyond holding. The recent ETH price action and ETF dynamics underscore the need for patience amid bearish signals, yet the fundamentals point to resilience. Stablecoin liquidity at record levels signals latent capital ready to deploy, potentially fueling a rebound if technical supports hold. Geopolitical factors, such as the US-China deal, might indirectly benefit crypto by stabilising global trade and reducing uncertainty that drives safe-haven flows into assets like gold and Bitcoin.

In reflecting on this week’s developments, I see a market at an inflexion point, where central bank actions could unlock fresh upside across asset classes. The TikTok framework deal exemplifies how diplomacy can swiftly alter risk perceptions, much like how corporate crypto moves challenge traditional finance norms. While Ethereum faces near-term headwinds from technical breaks and outflows, its structural advantages position it for outsized gains in a rate-cutting environment favouring growth assets.

Overall, global sentiment leans positive, with equities, commodities, and cryptos aligned for potential advances if policymakers deliver as anticipated. Investors should focus on diversification, monitor yield curves and ETF flows, and trade headlines for cues. This convergence of events reminds us that markets thrive on clarity, and with major decisions imminent, the stage is set for a dynamic week ahead.

Image Credit: alex varela on Unsplash

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Echelon Singapore 2025 – AI agents at work: The future of productivity

At Echelon Singapore 2025, Prahlad Jaya of kurate opened a fireside chat with Clare Leighton of fileAI by reflecting on the company’s evolution from Blue Sheets into a key player in AI workflow automation. Over its five-year journey, fileAI has raised over US$20 million while operating in highly regulated industries, an environment where compliance and efficiency are critical. Jaya noted how industry perspectives have shifted from skepticism toward AI to seeing it as an essential part of strategic operations, especially with measurable ROI as a driving force.

Leighton elaborated on the technological journey, tracing AI’s progression from natural language processing to today’s Generative AI era. She emphasised how adoption patterns have changed, moving from top-down mandates to user-driven integration across workplaces. Looking ahead, both speakers stressed the value of a centralised interface for AI tools and highlighted MCP’s role in simplifying enterprise adoption. Together, they positioned AI agents as indispensable enablers of future productivity and compliance.

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Atomionics bags US$12.7M to map earth’s subsurface with quantum sensors

Atomionics, a deeptech startup specialising in quantum sensing technologies, has closed a US$12.7 million (approximately £10.1 million) pre-Series A funding round.

Paspalis led the funding round, which saw participation from a diverse group of strategic investors, including BHP Ventures, In-Q-Tel, Wavemaker Partners, VU Venture Partners, SG Growth Capital, and Alex Turnbull.

Notably, Atomionics also counts Singapore’s SEEDS Capital (now known as SG Growth Capital), SGINNOVATE, and Cap Vista, the investment arm of Singapore Defense, among its broader investor base.

The funding will fuel Atomionics’s ambitious global expansion plans. In Australia, the company intends to expand nationwide with the strategic backing of Paspalis, establishing an office and building capabilities across the country. Early deployments and test-bedding opportunities are already underway in Australia’s Northern Territory, which offers vast potential for critical minerals but remains largely underexplored.

Also Read: Atomionics champions a more sustainable energy exploration through its virtual drilling innovation

Concurrently, Atomionics will establish a US office to expand its capabilities in North America. It will focus on resource exploration and potential dual-use applications for the commercial and defence sectors. With the backing of investors like In-Q-Tel, Atomionics will explore opportunities in national security and strategic resource applications, advancing both commercial and government partnerships.

Sahil Tapiawala, CEO and co-founder of Atomionics, said. “The strategic capital from investors with an interest in both Australia and North America gives us a way to accelerate the deployment of our quantum gravity sensors.”

“We will further use this capital to use quantum sensors to help find copper, lithium and other critical minerals, providing the mining and energy industries with an unprecedented ability to locate and assess resources sustainably. High-quality data is the foundation for AI-powered decision-making, and our sensors have the potential to acquire the most detailed gravity datasets ever collected,” Tapiawala added.

Atomionics’s core innovation lies in its Gravio device, a portable, basketball-sized sensor that functions as a “virtual X-ray” for the earth. This quantum gravimetry technology enables high-resolution subsurface mapping up to ten times faster than conventional methods. By combining ultra-sensitive quantum sensors with AI-driven interpretation, Gravio identifies what lies beneath the ground without needing to penetrate the earth or emit any electromagnetic radiation.

The underlying process, known as “cold atom interferometry,” is a cutting-edge scientific method typically constrained to atomic physics laboratories, used to detect phenomena like black holes and gravitational waves. Gravio packages this advanced science into a compact, field-deployable unit.

The Gravio device promises to “significantly” improve the efficiency and environmental footprint of resource exploration. Traditional methods are labour-intensive, often yielding low-resolution maps where one pixel represents an area as large as a football field, with drilling a “hit-or-miss process with only 10 per cent accuracy”. Gravio, conversely, can deliver maps with a spatial resolution comparable to a couple of pizza boxes, dramatically enhancing precision.

Also Read: SEEDS Capital and partners to inject US$222M into Singapore’s deeptech startups

By detecting the unique “gravity signature” of different masses and densities underground (such as dense metal ore deposits), Gravio enables the identification of critical minerals like lithium, copper, cobalt, and nickel, which are vital for electric vehicles and other modern technologies.

This represents a significant step towards a more precise and environmentally conscious approach to resource exploration and extraction, moving away from ecologically detrimental trial-and-error practices.

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This Malaysia Day, Cinch connects Malaysians to the latest devices

Cinch: From RM22/month, enjoy the latest phones, laptops and tablets without buying, with no upfront cost, no lock-ins, and the flexibility to upgrade anytime.

KUALA LUMPUR, 17 September 2025 — This Malaysia Day, Malaysians are celebrating a different kind of unity—the freedom and flexibility to enjoy the latest devices without buying them. Just as Malaysia was built on uniting diverse strengths, Cinch, Asia’s leading Device-as-a-Service (DaaS) platform, is bringing people together with access to premium phones, laptops, and tablets from RM22/month, with no upfront spend, no credit card required, and no long-term lock-ins. To mark the occasion, Cinch has launched its Malaysia Day Megadraw campaign, giving new subscribers the chance to win exclusive prizes and rewards on top of instant savings. 

Your devices, your freedom

Cinch offers a smarter alternative to buying. Instead of spending thousands upfront, customers pay a simple monthly fee that covers everything from full service coverage, repairs, replacements, and technical support. From the newest iPhone or Samsung Galaxy to high-performance laptops for entire teams, Cinch makes cutting-edge tech accessible, affordable, and sustainable. 

“We’re thrilled to launch Cinch in Malaysia, as this is the perfect next step for our growth journey. Malaysia Day reminds us of the power of progress and unity, and we want to bring that same spirit to technology, giving Malaysians the freedom to access the latest phones, laptops and tablets without hefty upfront costs or long-term lock-ins. Premium devices, on your terms, that’s exactly what Cinch is all about,” said Mahir Hamid, CEO & Founder of Cinch.

Also read: Cinch wants to change how Southeast Asia owns tech—one subscription at a time

Simple, flexible subscriptions

Cinch: From RM22/month, enjoy the latest phones, laptops and tablets without buying, with no upfront cost, no lock-ins, and the flexibility to upgrade anytime.

Getting started is simple. Choose a device and subscription term that ranges from 3 to 24 months, then complete a quick credit check before the payment process. Devices arrive at your doorstep, ready to use. Cinch also covers 90% of accidental repair costs so users can enjoy their tech worry-free. Customers can also return, upgrade, or purchase outright, with every monthly payment counting toward the final price.

Devices on demand: Zero ownership hassle 

Cinch, Asia’s leading Device-as-a-Service platform has over 15,000 active subscribers. Named to the Forbes Asia 100 to Watch 2025 list, Cinch is backed by a US$28.8M raise with Monk’s Hill Ventures in April 2025. The platform helps businesses equip teams with laptops, phones, and tablets without the cost or hassle of ownership. Trusted by enterprises like SPH, Cinch delivers ready-to-use devices with enterprise-grade security and full lifecycle management, enabling companies to scale, deploy regionally, and protect data with remote lock and instant wipe, all without capital expense.

Strengthening its leadership to power this growth, Cinch is announcing that Arvin Singh joined as Chief Operating Officer to lead Cinch’s growth and operations across Southeast Asia. A fintech veteran with experience at Visa and Worldpay, Arvin co-founded hoolah, Asia’s pioneering BNPL platform acquired by ShopBack in 2021. He also served on the Fintech Association of Malaysia’s committee for three years, bringing regional expertise to help make smarter tech living seamless for consumers and businesses. 

“Malaysia is entering a new phase of digital growth, and businesses need solutions that match their speed and ambition. With Cinch, companies no longer have to be held back by rigid contracts or outdated hardware. Our subscription model gives them the freedom to scale on their own terms while supporting Malaysia’s ongoing transition into a truly digital economy,” said Arvin Singh, COO of Cinch. 

Also read: From ownership to access: How Cinch is redefining tech ownership in Southeast Asia

Cinch Megadraw: Free subscription & RM50 Grab vouchers

Cinch: From RM22/month, enjoy the latest phones, laptops and tablets without buying, with no upfront cost, no lock-ins, and the flexibility to upgrade anytime.

Cinch celebrated Malaysia Day by making cutting-edge tech easier, smarter, and more rewarding. Inspired by the unity and progress this day represents, Cinch is investing in Malaysia’s digital future, giving people the freedom to enjoy the latest devices without the cost or hassle of ownership. From 13 – 30 September 2025, every new sign-up enters the MiniDraw to win RM50 Grab vouchers, while every subscription also qualifies for the MegaDraw grand prize, a FREE Cinch subscription, plus instant savings with the promo code MYDAY5.

Cinch: From RM22/month, enjoy the latest phones, laptops and tablets without buying, with no upfront cost, no lock-ins, and the flexibility to upgrade anytime.

With its launch in Malaysia, Cinch is setting out to change how Malaysians experience technology, replacing ownership headaches with pure usage freedom. For more information, visit cinch.my, and follow @cinchtehmy on social media.

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Beyond non-competes protecting startup talent in AI and Web3

In highly competitive sectors like AI and Web3, where skilled talent is notoriously scarce, retaining top engineers, researchers, and developers is a constant battle for startups. 

Founders often grapple with the risk of staff jumping ship to rivals, taking valuable knowledge and networks with them. Non-compete clauses in the form of contractual agreements that restrict ex-employees from joining competitors or starting similar ventures for a set period seem like a logical safeguard. 

However, their enforceability varies significantly by jurisdiction, and in places like Malaysia and Singapore, legal hurdles abound. This article explores the legal landscape, and outlines viable alternatives such as non-solicitation agreements, post-employment confidentiality obligations, and IP assignment clauses to protect startup assets when dealing with departing staff.

The recent talent poaching in AI came in several months ago when Meta CEO Mark Zuckerberg aggressively tried to recruit top engineers, offering compensation packages worth up to US$300 million over four years to lure experts from competitors like OpenAI. Reports mentioned that Zuckerberg personally negotiated with candidates, framing these offers as akin to NBA star contracts, complete with massive upfront bonuses and equity. 

For other industries like crypto, similar dynamics play out as with blockchain developers frequently headhunted by larger firms like Binance or ConsenSys, where the promise of higher salaries and cutting-edge projects  may override loyalty. In such environments, non-competes may theoretically deter defections, but their legal standing often renders them ineffective, forcing founders to seek alternative protections.

Legal position on non-compete and challenges in enforcing non-compete

In Malaysia, non-compete clauses are generally void and unenforceable, classified as restraints of trade under the Contracts Act 1950. Unlike common law jurisdictions that may apply a “reasonableness” test, Malaysian courts have in the past refused to recognise post-employment restrictions outright once deemed a restraint, offering no discretion as they are very tough to enforce. This stems from a strict interpretation that prioritises an individual’s right to work over employer interests, except in limited cases like business sales.

Even in the US, a non-compete clause cannot generally be enforced in the US for most talent staff after the Federal Trade and Commission (FTC)’s Non-Compete Rule becomes effective on 4 September 2024, with the exception of existing non-competes for senior executives, which can remain in force. The rule broadly prohibits new non-competes and invalidates most existing ones, although it is currently facing legal challenges that could impact its implementation.

Also Read: The legal roadmap every Southeast Asian startup needs

As a founder, this means a non-compete barring an ex-employee from joining a rival AI firm for two years is deemed void, even if narrowly tailored. Founders may thus avoid relying on non-competes, as it is unlikely to stand in the court of law.

Singapore presents a more nuanced picture. On the surface, non-compete clauses are prima facie void as restraints of trade but it may be enforceable if the employer can demonstrate that such clause is to protect a legitimate proprietary interest (e.g. such as trade secrets or client relationships) and are reasonable in scope, duration, and geography.  In practice, courts will need the employers to prove necessity, with restrictions typically limited to 6-12 months and specific industries. 

To illustrate, a non-compete clause restricting a former crypto developer from working on similar blockchain projects for a year may hold if it safeguards confidential algorithms, but overly broad terms (e.g., barring all tech roles) may likely fail. 

Top four alternatives to non-compete agreements

Given these limitations, founders may pivot to other alternatives that courts in both Malaysia and Singapore readily uphold. 

  • Non-solicitation agreement: A non-solicitation restrict ex-employees from poaching clients, colleagues, or partners for a reasonable period, directly protecting relationships without broadly restricting employment. This may prevent a departing researcher from recruiting team members to a rival company. 
  • Non-disclosure agreement: Post-employment confidentiality obligations, often via non-disclosure agreements (NDAs), bind staff to secrecy on proprietary info like codebases or algorithms indefinitely, enforceable as they target specific assets rather than competition. For crypto firms, this safeguards wallet protocols or smart contract designs.
  • Scholarship or training bond: Another option is to utilise scholarship or training bonds as an effective alternative to non-compete clauses to retain skilled staff and protect investments in employee development. These bonds are contractual agreements where employees commit to remain with the company for a specified period (e.g. typically 1-3 years) after receiving fully or partially funded training, certifications, or educational programs, such as AI research courses or blockchain development bootcamps. If the employee leaves before the bond period ends, a clawback provision requires them to repay a prorated portion of the training costs, incentivising retention without restricting future employment. Legally speaking, such bonds may generally be enforceable if reasonable and proportionate in duration and cost, as they do not violate the prohibition on restraints of trade.
  • IP assignment agreement: Finally, IP assignment agreements ensure all inventions created during employment belong to the company, clarifying ownership and preventing ex-staff from claiming rights to developed tech. These can include “present assignment” clauses for future IP, crucial in fast-paced Web3 where employees might fork projects post-exit. Tailoring NDAs to be specific and fair enhances enforceability, avoiding the pitfalls of overreach.

Also Read: 5 legal mistakes startups make after inception and how you can avoid them

Final thoughts

In conclusion, while non-competes offer illusory protection in Malaysia and conditional safeguards in Singapore, founders must foster retention through culture, equity incentives, and these legal alternatives.

By emphasising confidentiality and IP assignments, startups may mitigate risks from ex-employees without alienating talent in scarce markets. Proactive drafting in employment contracts, with the assistance of a local counsel, may ensure innovation can thrive amid competition.

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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