Higala, an inclusive banking infrastructure startup in the Philippines, has closed its seed funding round at US$4 million.

The investors include Talino Venture Studios, Chemonics International, Kadan Capital, Tenco Capital, and 1982 Ventures.

This round follows Higala’s seed extension round led by 1982 Ventures in March this year.

Also Read: Talino Venture Studios launches, invests in inclusive instant payment system Higala

The fresh capital will support the company’s push to digitise rural banks and microfinance institutions operating in underserved parts of the Philippines, where access to financial services remains limited.

“This funding will help us bring unprecedented growth to financial institutions and their customers in places bereft of digital enablement,” said Higala founder and CEO Winston Damarillo.

Higala, a registered operator of a payment system, promotes inclusion by lowering the cost of real-time payments, helping financial institutions price their instant payments reasonably. It also aims to provide inclusive financial solutions to the underbanked and rapidly enable merchants to accept digital payments.

The fintech startup’s open payments platform, SynerFi, is designed to lower entry barriers for smaller financial institutions participating in InstaPay, the Philippines’ real-time payments network. Rural banks already onboarded to SynerFi include Rural Bank of San Antonio, Rural Bank of Lipa City (Batangas), Progressive Rural Bank, Banco Abucay, Rural Bank of Hermosa (Bataan), Money Mall Rural Bank, First Philippine Partners Bank (A Rural Bank), and Lagawe Highlands Rural Bank.

A significant portion of the funds will be used to strengthen SynerFi.

Also Read: How digital banking is driving financial inclusion in SEA

“Connecting rural banks to Instapay and the wider digital ecosystem is not simply an act of digitalisation, but a deeper commitment to accelerate financial inclusion in underserved areas,” said Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer at Rizal Commercial Banking Corporation (RCBC).

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In Indonesia’s increasingly competitive and cautious economic climate, small and medium-sized enterprises (SMEs) are facing a complex set of challenges.

According to Arthur Adisusanto, Country Head for Indonesia at Funding Societies, the slowdown in consumer spending has had a direct impact on SME revenues and their ability to grow. While inflation and global headwinds contribute to the uncertainty, the bigger issue is that Indonesia’s economic expansion has not met expectations. As Adisusanto notes, first-quarter GDP growth fell short of the government’s 5.2 per cent target, dampening the growth prospects of the very businesses that power much of the country’s economy.

Against this backdrop, the demand for financing among SMEs remains strong. Yet, not every business is positioned to secure credit. Funding Societies—long recognised as a leading SME digital financing platform in Southeast Asia—has adapted its strategy in response to this evolving landscape. The company has shifted its focus away from ultra-micro and micro enterprises, such as sole proprietors and home-based operations, and is concentrating on SMEs with more established structures, financial records and cash-flow visibility.

This shift is part of a broader effort to ensure sustainable growth and responsible lending. “We obviously want to be there and bridge the financing gap,” Adisusanto says in an interview with e27. “But at the same time, we also need to protect the lenders. If the clients that come to us don’t meet our criteria, then we have to reject them.”

Operating across Indonesia, Singapore, Malaysia, Thailand and Vietnam, Funding Societies adapts its offerings to the unique needs of each country. In Malaysia, the company has established a strong presence in dealer financing, supporting vehicle dealerships with inventory funding. Singapore has developed a niche in fixed-asset financing backed by property.

Also Read: Starting off with the goal to empower Malaysian SMEs, Fiuu reveals the secret sauce behind its growth

Indonesia, however, takes a distinctly horizontal approach. Rather than focusing on specific industries, Funding Societies assesses SMEs based on their financial fundamentals. “We don’t necessarily look at verticals. We assess the business, the financials, the cash flow and the credit history,” Adisusanto explains.

This enables the platform to support a diverse range of Indonesian SMEs, particularly those that traditional banks often overlook.

How institutional investors power growth

Indonesia has nearly 3,000 financial institutions, from commercial banks to rural banks and multifinance companies. While banks generally serve larger SMEs, many lack the infrastructure to lend to smaller businesses. This is where Funding Societies sees tremendous potential. Through partnerships, banks can channel funds to smaller SMEs via the platform, using Funding Societies’ technology, underwriting and monitoring capabilities.

Apart from that, Funding Societies often steps in when banks decline credit applications. While this places the company in a higher-risk segment, it also fills a critical financing gap for businesses that still have strong fundamentals but lack the collateral, credit history, or scale required by banks.

When SMEs compare financing alternatives, three factors typically matter most: pricing, speed and certainty of capital. Adisusanto is candid that Funding Societies is not the cheapest provider and does not promise the fastest disbursements. Its due diligence process takes more time compared with lenders that offer approvals in minutes because SME financing is inherently more complex and demands careful assessment. However, the company excels where it counts: reliability.

“Where I think we would win is the guarantee that the capital is there when they need it,” he says.

A key driver behind Funding Societies’ ability to guarantee capital lies in its growing partnerships with institutional investors. While the platform once maintained a balanced mix between retail and institutional funders, retail investor participation has dwindled amid negative perceptions of the wider peer-to-peer lending industry.

Institutional investors, ranging from funds to financial institutions, have become Funding Societies’ primary source of financing. These institutions are more receptive to data-driven risk assessments and can appreciate the platform’s differentiated approach and robust credit evaluation.

Also Read: Higala closes US$4M round to bring real-time payments to rural banks in Philippines

“With institutions, you can reason with them,” Adisusanto notes. “[With retail investors,] there’s a lot more pre-work to make them understand how we’re different and how we manage our risk.”

In the next two to three years, Adisusanto envisions deeper collaboration across the financial sector, enabling more SMEs to “graduate” to better, cheaper facilities, whether through Funding Societies or traditional banks. “If they grow and get better facilities, that means we’ve done our job,” he says.

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When I was working with an EV brand in Indonesia last year, I was impressed to see that over 70 per cent of the vehicle components were locally sourced. It was a rare glimpse into what a more self-reliant Southeast Asian manufacturing ecosystem could look like.

But behind that milestone lurked a deeper question: can our region scale up as a global alternative without repeating the environmental and social missteps of past industrial booms? 

The region’s industrial rise

Southeast Asia is increasingly emerging as a viable alternative to China for manufacturing Electric Vehicles (EVs) and semiconductors.

In the Southeast Asia semiconductor market, revenue is projected to reach US$95.89 billion in 2024, with integrated circuits dominating the market, accounting for US$86.54 billion of the total revenue. The market is expected to grow at an annual rate of 11.25 per cent (CAGR 2024-2029), reaching a market volume of US$163.40 billion by 2029.

The hidden costs of rapid growth

However, while Southeast Asia’s manufacturing potential is undeniable, it comes with a critical caveat: many of the region’s industrial gains have historically come at a high cost—to both the environment and local communities.

Also Read: The secret weapon of marketing? Why every business needs a CDP

In Indonesia, for example, the rapid expansion of nickel mining—driven by soaring global demand for electric vehicle batteries—has resulted in widespread deforestation and ecosystem degradation.

The Indonesia Weda Bay Industrial Park (IWIP) in Halmahera has been linked to the clearing of thousands of hectares of forest and the pollution of rivers and coastal waters, with severe consequences for local livelihoods and biodiversity.

Across the region, industrial growth has consistently outpaced environmental safeguards. Studies show that unsustainable resource extraction and pollution not only harm ecosystems and public health, but also undermine long-term economic growth.

According to the World Health Organisation (WHO), air pollution alone causes over 500,000 premature deaths in Asia annually—representing both a human tragedy and a significant economic burden on healthcare systems and productivity.

Aligning strengths across borders

But the challenges facing Southeast Asia’s industrial future are not inevitable—they are solvable. With the right policies, partnerships, and priorities, the region can build a manufacturing ecosystem that is not only competitive, but also clean, inclusive, and resilient. Despite the missteps of past industrial booms, each country in the region brings unique strengths to the table.

Indonesia, for instance, is home to vast nickel reserves, estimated at 17.7 billion tons of ore and 177.8 million tons of metal, with accessible reserves reaching 5.2 billion tons of ore and 57 million tons of metal. Meanwhile, Vietnam’s manufacturing and processing sectors continue to attract significant investment, with 106 new projects and US$3.13 billion in newly registered capital recorded in November 2024. 

Singapore is reinforcing its global semiconductor supply chain position with a SG$500 million investment in the upcoming National Semiconductor Translation and Innovation Centre (NSTIC).

These examples highlight the immense potential of Southeast Asian nations to lead in next-generation manufacturing. But in my view, the region’s future success won’t depend on which country takes the lead—it will depend on how well we integrate and collaborate as a unified ecosystem. 

Also Read: From burn rate to break even: Why Southeast Asia’s startups must rethink growth

Without a coordinated, ethical industrial strategy, Southeast Asia risks becoming a low-cost manufacturing zone at the expense of its people and environment. The opportunity to lead the EV and semiconductor future must not be built on the mistakes of the past—but on a shared ASEAN framework that enforces sustainability, inclusivity, and cross-border innovation.

Despite encouraging bilateral moves, such as Indonesia-Vietnam digital cooperation and ASEAN clean energy commitments, these remain fragmented and often lack regulatory teeth.

Without a unified ASEAN mechanism to enforce ethical sourcing, transparent technology transfer, and just industrial transition, the region risks exporting its future while importing its problems.

A shared path for a stronger tomorrow

Southeast Asia doesn’t need to wait for global frameworks—it can lead. An ASEAN Green Manufacturing Charter could set enforceable ESG standards across borders, while a shared tech-sharing protocol would turn isolated innovation into collective leverage.

Most importantly, the region must treat its mineral wealth not as a quick win, but as a shared trust that demands ethical stewardship.

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Asia-Pacific (APAC) is at the forefront of the global green revolution, but the region still faces several challenges in accelerating its clean energy journey. Chief among them is the need for robust support in transitioning from fossil fuels to greener power. This transition requires the widespread deployment of low-carbon technologies to enable high-emitting industries to decarbonise effectively and transition toward a cleaner future.

The investment challenge

Addressing these challenges demands not only technological innovation but also substantial investments in new infrastructure and financial mechanisms. The Asian Development Bank (ADB) estimates that Asia will need to invest approximately US$1.7 trillion annually in infrastructure through 2030 to sustain economic growth, combat poverty, and address escalating climate risks.

When it comes to climate financing specifically, the challenge is even more acute, with the region facing a shortfall of at least US$800 billion annually, according to the International Monetary Fund. This underscores the urgent need for innovative financial tools, such as “transition finance,” to bridge the capital gap for both large-scale renewables projects and early-stage climate tech ventures.

APAC’s pivotal moment

Asia is leading the charge in creating investor opportunities, nurturing groundbreaking innovations, and establishing itself as a global hub for the incubation of low-carbon technologies.

The region stands at a pivotal moment, with a unique opportunity to act decisively and leverage the green transition not only as a pathway to decarbonisation but also as a catalyst for long-term competitive advantage and economic growth. To fully unlock this potential, there is an urgent need for actionable decarbonisation strategies and transformative accelerators that can drive immediate progress and scale sustainable solutions across the region.

According to a 2024 study by Boston Consulting Group, by 2030, renewables could account for 30–50 per cent of the power generation mix in many APAC markets, underscoring the region’s vast potential. To move the needle further, private-sector organisations can play multiple roles. Collaboration between corporations and startups offers a powerful opportunity to leverage their respective strengths, with two key objectives: supporting climate tech startups in Asia and fostering a robust Asian investment community.

Also Read: What does Trump mean for SEA climate scene?

Companies like Towngas are paving the way by creating ecosystems that bring together climate tech startups and innovative ideas. Besides directly funding or operating renewable energy projects, they can serve as platforms for incubating and amplifying early-stage innovations.

Global competitions like the TERA-Award Smart Energy Innovation Competition offer a case in point. Such competitions gather the brightest ideas in hydrogen, carbon neutrality, energy storage, and more—then connect emerging innovators to venture capital and the broader industry ecosystem.

Bridging the gap between innovation and commercialisation

By doing so, they bridge the critical gap between concept and commercialisation, allowing impactful clean-tech solutions to scale quickly in APAC’s fast-moving markets. This synergy not only drives the growth of climate tech in Asia but also strengthens the region’s position as a global leader in sustainable innovation.

APAC industries are accelerating the adoption of sustainable fuels like hydrogen, green methanol, and sustainable aviation fuel (SAF) to advance decarbonisation across marine, land, air, and industrial sectors. Past TERA-Award winners have showcased novel approaches to hydrogen production, energy storage solutions, and other clean-energy breakthroughs.

The path to a sustainable future

From advanced methods of manufacturing green hydrogen to high-efficiency systems for capturing and reusing carbon, these teams demonstrate how emerging technologies can help public and private sectors alike meet ambitious sustainability targets.

As more companies step up with funding, partnerships, and platforms for innovation, APAC’s green tech leadership is set to flourish—positioning the region as a key driver of the sustainable, low-carbon future that the world urgently needs.

Also read: Balancing economic growth and climate action: Decarbonising SEA’s built environment

Achieving emission targets requires unified, collective action from all stakeholders. Collaboration between governments and private enterprises is paramount to overcoming regulatory hurdles and ensuring a well-orchestrated rollout of green initiatives that can truly transform marine, land, air, and industrial sectors.

As the region accelerates the development of its green technology ecosystem, it is rapidly closing the gap with global leaders in clean energy and solidifying its position as a key player on the international stage.

At Towngas, we reflect our commitment to combating climate change through innovation, actively contributing to green tech development and fostering strategic energy partnerships. These efforts highlight APAC’s critical role in driving a sustainable, low-carbon future and shaping global climate action.

The fourth edition of TERA-Award is now open for application. Learn more from here.

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For over two decades, corporations compensated for inefficiency by adding layers of coordination instead of fixing the system. When something didn’t work, they didn’t redesign it — they hired someone to “manage” it.

Soon, entire ecosystems of meta-work emerged — jobs that existed to describe, oversee, or justify other jobs. They multiplied inside large organisations — roles that filled reporting gaps, not production gaps.

As anthropologist David Graeber famously wrote: “A bullshit job is one that, even the person doing it, secretly believes need not exist.”

These positions kept the corporate machine comfortable — absorbing graduates, padding hierarchies, and maintaining the illusion of growth.

These roles didn’t produce value — they performed it. Their output was visibility: reports, alignment sessions, status meetings, dashboards, updates.

But when AI arrived, it became the ultimate performance review. Anything that didn’t create measurable value became a candidate for deletion.

The great correction

When AI arrived, it didn’t have the patience for this theatre. Algorithms don’t need “alignment calls. They only need inputs and clear parameters.

AI didn’t just automate repetitive work — it audited the entire white-collar economy.

It isn’t just replacing labour — it’s revealing how much of it never created value in the first place.

It exposed:

• How much of “knowledge work” was actually administrative overhead?
• How many middle layers existed to repackage data and PowerPoints?
• How many decisions could be made faster, cheaper, and more accurately by algorithms?

Suddenly, entire strata of “pseudo-productive” roles were wiped out, and the pendulum swung from overemployment to over-efficiency.

What’s left now is a leaner economy — one that prizes execution, creativity, and synthesis over attendance, meetings, and memos.

Also Read: Levelling the playing field: How AI can transform SME hiring

The new problem: The missing middle

The irony? This over-correction might have been a step too far.

Automation isn’t just transforming industries — it’s compressing the career ladder. Across every sector, entry-level roles once considered “training grounds” are disappearing.

Many of those “bullshit jobs” accidentally functioned as incubators. Junior staff learned how organisations worked, how decisions were made, and how to navigate pressure.

Customer service? Now handled by AI chatbots. Data entry and basic analysis? Automated by APIs. Assistant and junior admin functions? Replaced by workflow software.

What looks like efficiency today creates an invisible problem tomorrow: A generation entering the workforce without ever learning how to work.

A leadership gap in the making

For decades, career development followed a predictable rhythm:

Learn by doing -> Manage a small process -> Lead a team.

But when the doing gets automated, the learning disappears. Graduates who might have started as analysts, assistants, or coordinators now face a jump directly into mid-level roles without the muscle memory of execution.

This creates a silent bottleneck:

• Fewer people trained in operations -> fewer competent managers.
• More theoretical graduates -> less real-world decision-making skill.
• An over-supply of “strategy talent” but an under-supply of “execution talent.”

That’s how an economy ends up with brilliant resumes but brittle organisations.

Also Read: AI bubble fears trigger market rotation: What it means for crypto and tech stocks

The opportunity: Build value, not vanity

This is where the real entrepreneurs and builders step in. The correction creates room to rebuild the work ecosystem around true value creation.

It’s not about bringing the old jobs back — it’s about building smarter ladders. If the bottom rungs are gone, we need new scaffolding:

• Apprenticeship ecosystems: partnerships between companies, startups, and governments to provide project-based learning.
• Fractional roles: part-time or remote junior assignments across multiple SMEs, giving broad exposure fast.
• AI-assisted training: using automation not as a replacement, but as a coach — teaching new workers how systems think and operate.

These are the new entry points into experience.

What businesses can do

For companies, this isn’t just a social issue — it’s a strategic one. Without a functioning entry pipeline, your future management pool shrinks.

Forward-thinking firms are already experimenting with:

• “Shadow roles” where junior hires train alongside AI systems.
• Cross-border internships connecting young professionals in emerging markets to remote SMEs abroad.
• Skill micro-certifications that replace old job titles with verifiable execution capability.

This is where companies can make a difference, building the frameworks that connect ambition to apprenticeship, learning to leadership.

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