Environmental impact and governance have emerged as central factors in digital infrastructure decision-making, with a substantial proportion of IT leaders prioritising sustainability.

According to the 2024 Digital Infrastructure Report by Colt, 38 per cent of IT decision-makers report that environmental and governance factors drive all strategic decisions, while another 36 per cent acknowledge their influence.

This growing emphasis reflects the increasing role of Chief Information Officers (CIOs) and senior IT leaders in shaping corporate sustainability strategies, with 71 per cent having a direct role and nearly a quarter (24 per cent) owning their company’s entire strategy.

AI as a key enabler of sustainability

Artificial intelligence (AI) is playing an integral role in advancing sustainability strategies, with 22 per cent of CIOs stating that AI actively facilitates their environmental impact and governance initiatives.

A further 42 per cent recognise AI as having a modest influence, highlighting its growing integration into corporate sustainability efforts.

However, AI’s impact is not uniform across regions and industries; for example, 36 per cent of CIOs in Hong Kong view AI as a facilitator of sustainability, compared to just 13 per cent in Italy. The education sector reports a 38 per cent adoption rate, while in government and local government, this figure drops to 11 per cent.

Also Read: Cloud, community, and cost-Savings: GCS’s triple play for startup success

1. AI-driven capabilities for carbon reduction

One of AI’s most significant contributions to sustainability is its role in reducing carbon emissions. Tools powered by the technology are helping businesses optimise energy efficiency by enabling intelligent infrastructure management.

Generative AI, cited by 24 per cent of respondents, is particularly relevant in this space, as organisations increasingly rely on smart systems to manage energy consumption in response to growing digital service demands.

2. Network-as-a-Service (NaaS) and optimised resource use

A major way AI supports sustainability is through its facilitation of Network-as-a-Service (NaaS) features. The report finds that 58 per cent of CIOs credit AI with enabling on-demand network capabilities.

NaaS plays a crucial role in carbon reduction by allowing organisations to use only the bandwidth they need, minimising unnecessary power consumption. This model contrasts with traditional network infrastructure, which often results in excess capacity and wasted energy.

3. Strengthening security and supplier evaluation

Security enhancements driven by AI are another contributing factor to sustainability. Some 61 per cent of CIOs report that AI has facilitated investment in improved security infrastructure. While security improvements may not have an immediately apparent link to sustainability, optimised cybersecurity reduces disruptions that could lead to increased energy use.

AI also assists businesses in evaluating their suppliers, with 60 per cent of CIOs leveraging insights to reassess vendor partnerships. This capability allows organisations to select environmentally conscious suppliers, reinforcing the broader push towards sustainability within the digital infrastructure.

4. Improving data quality for sustainability reporting

Accurate data collection and reporting are crucial for tracking sustainability efforts, and AI is playing a pivotal role in this domain.

According to the report, 59 per cent of CIOs state that AI has improved data quality for environmental impact assessments and governance reporting. This enhanced data accuracy enables organisations to measure their progress effectively, refine their sustainability strategies, and ensure compliance with regulatory standards.

Moreover, improved reporting is instrumental in addressing Scope 3 emissions, which cover indirect emissions associated with supply chains and business operations.

Also Read: 1337 Ventures backs Arus Oil to drive Malaysia’s waste-to-energy revolution

Addressing AI’s own environmental impact

While AI is a valuable tool for advancing sustainability goals, its energy-intensive nature presents challenges. The report acknowledges that the rapid adoption is contributing to increased carbon emissions, underscoring the need for organisations to adopt sustainable practices.

As AI models become more complex and require greater computational power, companies must balance the benefits of efficiency with the environmental costs of maintaining large-scale AI operations.

Recognising the environmental implications of AI, network providers are offering guidance to CIOs on minimising related carbon emissions. The report highlights that 22 per cent of CIOs have received advice from their network providers regarding AI’s environmental impact, while 21 per cent are actively seeking such insights.

This collaboration between IT decision-makers and service providers is crucial in developing more energy-efficient AI solutions and aligning digital infrastructure with sustainability objectives.

AI is increasingly influencing corporate sustainability strategies, enabling more efficient resource management, enhancing data quality, and facilitating environmentally conscious decision-making. However, the disparity in adoption across different regions and industries suggests that its role in sustainability will continue to evolve.

As businesses seek to harness AI for sustainability gains, they must also address their growing energy demands and environmental footprint. By adopting strategic implementations and collaborating with network providers, organisations can maximise its potential while mitigating its associated challenges, ultimately contributing to a more sustainable digital infrastructure landscape.

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As I sit down to unpack the whirlwind of events shaping global markets on March 5, 2025, it’s hard not to feel the weight of uncertainty pressing down on us all. The headlines are buzzing with escalating trade tensions, bold economic proposals, and a crypto landscape that’s both thrilling and divisive. Let’s dive into this market wrap and explore what’s driving these shifts, what the data tells us, and where I think this rollercoaster might take us next.

The big story dominating the financial world right now is the trade standoff sparked by US President Trump’s decision to slap 25 per cent tariffs on goods from Canada and Mexico, alongside an additional 10 per cent on China. True to his campaign rhetoric, Trump has followed through, and the fallout has been swift.

Canada and China didn’t waste a moment, hitting back with their own retaliatory tariffs, while Mexico’s president has promised to join the fray by Sunday. The result? Global equities took a beating, with the MSCI US index dropping 1.2 per cent, dragged down by a bruising 3.5 per cent plunge in financials. It’s a grim picture, and you can almost feel the collective sigh from Wall Street as fears of a full-blown trade war loom large.

But here’s where it gets interesting. After the US markets closed, Commerce Secretary Lutnick dropped a hint that talks with Canada and Mexico might yield a compromise. That’s a lifeline for markets desperate for some stability, though I’m skeptical about how quickly this can be resolved.

Tariffs aren’t just numbers—they’re bargaining chips in a high-stakes game, and unwinding them could take time. Still, the mere suggestion of a deal nudged US equity futures upward, hinting at a brighter open today. My take? This feels like a temporary breather rather than a resolution. Trade wars don’t end with a single press conference—they fester, and I’d wager we’re in for more volatility before clarity emerges.

Also Read: How is open-source collaboration empowering Asia’s fastest growing markets?

Over in the bond market, the reaction was equally telling. The benchmark 10-year Treasury yield climbed over 3 basis points to 4.21 per cent, reversing an earlier dip, while the 2-year yield slipped 3 basis points to 3.94 per cent. This widening gap—known as a steepening yield curve—screams uncertainty to me.

Investors seem to be betting on inflation from tariffs pushing up long-term yields, while the drop in short-term yields suggests some are seeking safety or anticipating a slowdown. It’s a classic push-and-pull, and I can’t help but think it reflects a market grappling with mixed signals.

Shifting gears to Europe, Germany’s conservatives and Social Democrats have unveiled a jaw-dropping plan: a 500 billion euro fund for infrastructure and a rewrite of borrowing rules to ramp up defense spending. It’s a bold move, and the markets loved it—the EUR/USD shot up to 1.0627 overnight. Other European currencies like the Swiss franc, British pound, Norwegian krone, and Swedish krona followed suit, flexing their muscles as the US Dollar Index stumbled 0.9 per cent to 105.49.

This feels like Europe seizing a moment to assert itself amid global chaos, and I’m impressed by the ambition. If Germany pulls this off, it could spark a ripple effect, boosting infrastructure and jobs while shoring up defenses—a win-win that might just give the eurozone an edge.

Meanwhile, commodities are painting a different picture. Brent crude slipped 0.8 per cent to below US$70 a barrel, the lowest since last October, thanks to OPEC+ signalling output hikes in April. That’s a supply glut waiting to happen, and with trade tensions clouding demand, I’m not surprised oil’s taking a hit.

Gold, on the other hand, rose 0.7 per cent, buoyed by a weaker dollar and its timeless appeal as a safe haven. It’s a tale of two commodities—one sinking under practical pressures, the other shining as a hedge against the unknown. I’d argue gold’s climb is a sign that, despite some optimism, fear still lingers in the market’s underbelly.

Across the Pacific, China’s National People’s Congress kicked off with a gutsy 5 per cent growth target for 2025, tariffs be damned. Investors are laser-focused on spending plans, especially around AI, which could be a game-changer for China’s tech sector.

Asian equity indices mostly rose in early trading, and with Trump set to address Congress today, all eyes are on what he’ll say about trade and beyond. My gut tells me China’s playing a long game here—pushing growth while quietly adapting to external pressures. That 5 per cent target might be ambitious, but if they lean into AI and innovation, it’s not out of reach.

Now, let’s talk crypto, because this is where things get wild. Vietnam’s Prime Minister Pham Minh Chinh has ordered a legal framework for digital assets, with a draft due this month. It’s a big deal—right now, cryptos like Bitcoin and Ethereum exist in a legal no-man’s-land there, forcing businesses to register in places like Singapore or the US.

A clear rulebook could unleash a wave of activity, and I’m excited to see Vietnam stepping up. Indonesia’s crypto scene is already on fire, with transactions soaring to 44.07 trillion rupiah (US$2.68 billion) in January 2025—a 104.31 per cent jump from last year. With 1,396 assets tradable as of February, it’s clear Southeast Asia is becoming a crypto hotspot.

Also Read: From crypto euphoria to economic unease: A world on edge in March 2025

Hong Kong’s not sitting idle either. On February 19, its Securities and Future Commission rolled out the ASPIRe Framework—five pillars and 12 initiatives to grow and secure its virtual asset industry. It’s a smart play to cement Hong Kong’s status as a financial innovation hub, and I’d bet it’ll draw in more players. But the real crypto drama is brewing in Washington.

Trump’s pushing for a strategic cryptocurrency reserve, originally pitched as a way to use seized assets like the US’s US$16.4 billion in Bitcoin and US$400 million in other tokens. The twist? He now wants XRP, SOL, and ADA included—tokens the US doesn’t even hold yet.

That’s sparked a firestorm, with critics crying foul over government meddling in markets and supporters cheering a bold embrace of crypto. Personally, I’m torn. It’s a visionary idea, but buying those tokens could spike prices and invite accusations of favoritism. The logistics alone are a nightmare—how do you stockpile volatile assets without distorting the market?

Stepping back, what strikes me most is the sheer breadth of these developments. Trade tensions are shaking equities and bonds, Europe’s flexing fiscal muscle, and Asia’s charging ahead with crypto and growth targets. The data backs this up: the MSCI US down 1.2 per cent, EUR/USD at 1.0627, Indonesia’s crypto boom, Brent at US$70—all pieces of a puzzle showing a world in transition.

My view? We’re at a tipping point. Trade wars could drag us down, but compromises and innovation—like Germany’s fund or Asia’s crypto push—offer hope. The US crypto reserve is a wild card; if executed poorly, it could backfire, but done right, it might signal a new era for digital assets.

I think markets will stay jittery until trade talks clarify—watch Canada and Mexico closely. Europe’s plans could stabilise things if they deliver, and Asia’s crypto momentum might just steal the spotlight. Trump’s speech today could set the tone, but I wouldn’t hold my breath for miracles. This is a marathon, not a sprint, and as a journalist digging into the facts, I’d say buckle up—we’re in for a ride that’s as unpredictable as it is fascinating.

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The work landscape in Southeast Asia has shifted dramatically since the pandemic began, and I have witnessed this transformation firsthand. Remote and hybrid working models have become the norm, and companies are now navigating the tricky balance between in-office presence and flexible work arrangements.

As we continue to adapt, I believe that employee well-being has become a crucial focus. Prioritising both mental and physical health isn’t just the right thing to do; it’s also a strategic move that boosts productivity, retention, and overall performance.

I recently came across research from Milieu Insight that sheds light on the concerning issue of employee burnout in Southeast Asia. Their survey of 3,000 employees across Singapore, Indonesia, and the Philippines revealed that 50 per cent experience burnout at least a few times a month, with 41 per cent struggling to disconnect from work.

The COVID-19 pandemic has exacerbated the mental health crisis globally, with prevalence rates particularly high in the region—70.71 per cent in the Philippines and 66.84 per cent in Singapore. These alarming statistics highlight the urgent need for companies to implement robust mental health support systems and foster sustainable work environments to effectively tackle this growing concern.

Employee well-being drives business success

Amid these challenges, many businesses have begun to recognise the tangible benefits of investing in employee well-being. Companies that prioritise mental health and work-life balance are reporting higher productivity, improved employee engagement, and better retention rates. This is also evident in companies offering hybrid work days and providing well-being tools and tips to their staff.

According to the latest Wellbeing Diagnostic Survey by WTW, companies in Singapore with effective well-being programs are twice as likely to experience better financial performance and human capital outcomes, including enhanced productivity and lower turnover rates.

Also Read: Our workplaces have changed a lot recently: Now here is the problem

To help organisations navigate this complex terrain, here are five practical strategies that can enhance employee satisfaction and retention:

Embrace work-life flexibility

In our rapidly changing work environment, flexible work arrangements have become essential for employee satisfaction. This flexibility can include options like remote work, adjustable hours, or the opportunity to work from different locations for a set period. For example, some companies allow employees to work from various global locations for up to 60 days a year.

This level of flexibility enables individuals to manage their personal and professional responsibilities more effectively. Additionally, offering benefits like extra leave days or community service leave can further support a healthier work-life balance.

Support family needs

Family is a cornerstone of our culture in Southeast Asia, and providing family-friendly benefits can significantly enhance employee loyalty and satisfaction. Comprehensive parental leave policies, such as 26 weeks of leave for both parents, demonstrate a company’s commitment to supporting employees during critical life stages.

This not only helps new parents manage their responsibilities but also fosters a sense of appreciation and loyalty. By extending support beyond the workplace, companies can build stronger connections with their employees, ultimately leading to higher retention rates.

Prioritise open communication

Effective communication is fundamental to understanding and addressing employee needs. Regularly engaging in open dialogues helps companies stay attuned to their employees’ concerns and preferences. Implementing feedback mechanisms, such as surveys or suggestion boxes, allows team members to voice their opinions and contribute to shaping workplace policies.

This approach not only shows that the company values employee input but also helps in crafting policies that resonate with their needs. For example, in the wake of a merger or organisational change, prioritising communication can ease transitions and reinforce a supportive work culture.

Also Read: Optimising workplace design for employee engagement and organisational success

Offer competitive benefits

Setting a high standard for employee benefits can distinguish your company as an employer of choice. In a competitive job market, offering exceptional benefits such as extended parental leave, flexible work options, and comprehensive health and wellness programs can attract top talent.

By providing benefits that exceed industry norms, companies can enhance their reputation and retain high-performing employees. Competitive benefits improve employee satisfaction and contribute to overall business success by creating a positive work environment.

Link employee happiness to customer satisfaction

Employees who feel supported are more likely to provide exceptional service. Many companies have observed a direct correlation between improved employee experiences and higher Customer Effort Scores (CES), a metric developed by Gartner to measure how easily customers can interact with a company and resolve their issues. Investing in employee satisfaction not only boosts internal morale but also enhances customer interactions, highlighting the far-reaching benefits of a supportive work environment.

Ultimately, the success of any organisation in Southeast Asia relies on its ability to effectively support and engage its employees. By implementing strategies that prioritise work-life balance, family support, open communication, competitive benefits, and linking employee satisfaction to customer outcomes, companies can cultivate a more resilient and productive workforce. Investing in employee well-being is essential for achieving long-term business success and maintaining a motivated, loyal team in today’s competitive market.

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This article was first published on November 12, 2024

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Generative AI is reshaping the way we work and live, providing powerful tools that boost productivity, inspire creativity, and enhance learning. From simplifying communications to supporting creative projects, generative AI has opened new possibilities and unique benefits to our everyday lives.

With a value of US$40 billion in 2023, the generative AI market is projected by Bloomberg Intelligence to grow to US$1.3 trillion by 2032, driven by a compound annual growth rate (CAGR) of 42 per cent.

Let’s dive into how it differs from traditional AI and how we can harness the power of generative AI.

Understanding the difference: Generative AI vs traditional AI

Traditional AI: Task-specific intelligence

Traditional AI is programmed to perform specific tasks with precision through analysing data and patterns, to make decisions within a predefined set of rules. Operating within a fixed boundary does not generate anything new. An example is when you play chess against a computer, traditional AI predicts your moves and strategises based on pre-programmed rules and past data. Even though it follows the same chess rules as humans, it cannot invent new rules or play styles.

Traditional AI is task-oriented and focuses on pattern recognition rather than pattern creation. Its strength lies in its ability to provide reliable, data-driven insights within a focused scope, making it an invaluable tool for tasks like predicting customer preferences and offering personalised recommendations.

Other examples of traditional AI include voice assistants like Siri or Alexa, recommendation engines on Netflix or Amazon, and search algorithms used by Google. These systems are designed to process and interpret patterns to complete specific tasks such as setting reminders, suggesting content, or retrieving relevant information.

Generative AI: Creativity in action

Generative AI represents the next evolution of artificial intelligence, shifting from task completion to content creation. Unlike traditional AI, generative AI learns from data to create entirely new content, be it text, images, music, or complex strategies. Instead of merely following the rules, it can invent new ways to achieve results based on learned patterns. Generative AI excels in fields requiring creativity, such as content generation, design, and innovation, opening possibilities for personalised media, virtual assistants, and AI-driven product design.

Also Read: Rise of generative AI in search: Exploring opportunities for APAC brands

Imagine an AI that not only plays chess but also creates new strategies and variations of the game. generative AI models, such as GPT-4 by OpenAI, DALL-E for images, and Midjourney for AI-driven art, showcase this capability by generating original stories, artwork, or designs based on a prompt or dataset. Trained on vast datasets, these models allow the understanding of underlying structures to recreate those structures in new ways.

A brief history of generative AI

Generative AI began with the introduction of generative Adversarial Networks (GANs) in 2014. GANs brought generative AI into the spotlight, showcasing the capability to create realistic images and other media through learning patterns from extensive datasets. GANs operate using two neural networks—the generator and the discriminator—that work against each other to improve the quality of the generated content. This breakthrough allowed generative AI to go beyond basic data processing into media creation, paving the way for the development of tools capable of producing highly realistic visuals.

The next leap in generative AI came with transformer-based models, particularly OpenAI’s GPT (Generative Pre-trained Transformer) series launched in 2019, marking a milestone in language generation by producing coherent and human-like text. This sparked widespread interest in generative AI and established the technology as a viable tool for text-based content creation. Released in 2020, GPT-3, elevated this to new heights with its ability to generate text that was nearly indistinguishable from human writing. In 2022, ChatGPT was introduced to the masses, allowing users to interact with AI-powered chatbots capable of answering questions, providing insights, and assisting in various tasks.

Also Read: Rise of generative AI in search: Exploring opportunities for APAC brands

Since then, generative AI has been evolving at a rapid pace, with the launch of numerous large language model (LLM) developments. Models like DALL-E for image generation, and Midjourney for digital art have made generative AI tools accessible to a wide range of users across both work and play.

Embracing the power of generative AI responsibly

From transforming creativity to enhancing productivity, generative AI offers remarkable tools that allow individuals and businesses to push boundaries and explore new avenues.

Traditional AI continues to be a cornerstone in many domains, playing a vital role in shaping our world. By understanding the distinction between both technologies, we can better appreciate each unique capability and leverage them effectively.

As with any powerful technology, responsible usage is crucial. Integrating generative AI requires a consideration of its ethical implications such as privacy concerns. We should be mindful to use it as an aid to human creativity and decision-making rather than a substitute. By balancing innovation with responsible practices, we can maximise the potential of generative AI to enrich our lives and work.

As generative AI continues to evolve, so too will the possibilities it offers. Embracing these advancements with curiosity, caution, and creativity will be key to making the most of this transformative technology. The future of AI is bright. With the right approach and mindset, we can navigate it effectively in ways that amplify human ingenuity, bring value to our lives, and open new opportunities that were once beyond imagination.

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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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This article was first published on November 11, 2024

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A significant step towards achieving environmental and economic sustainability is Pakistan’s recent decision to implement a carbon market policy. The new Carbon Market Policy Guidelines make it possible for startups and small-to-medium businesses (SMEs) to actively engage in carbon trading and green investments, although climate action has historically been portrayed as a government and corporate-level endeavour.

The focus now is on how small businesses can use carbon markets to boost growth, draw in investment, and obtain a competitive advantage in a world economy that is changing quickly, rather than whether they should pursue sustainability.

Monetising carbon reduction

For years sustainability has been seen as a CSR activity that is optional rather than a factor in the economy, but today, it is seen from a different lens. Due to be providing financial incentives for reducing emissions, the carbon market allows businesses to make money off of their environmental initiatives.

Pakistan’s regulation permits companies to sell carbon credits to purchasers worldwide, by international carbon trading processes. As global markets increasingly require low-carbon supply chains, this offers startups and SMEs the chance to make sustainability a revenue-generating strategy.

Trading carbon has enormous economic possibilities. Businesses that cut emissions, whether by adopting clean technology, reducing waste, or improving energy efficiency, can produce carbon credits that can be sold to multinational firms wishing to offset their own emissions. This results in a new asset class for companies to trade in addition to helping the environment. There is an increasing need for high-quality carbon credits, particularly from developing countries like Pakistan, since many rich economies have stringent carbon rules.

This shift allows the small enterprises to establish themselves as climate leaders by acting as proactive contributors to the global carbon economy.

Understanding Pakistan’s carbon market framework

The new carbon market strategy offers a well-defined structure to help with this shift. Businesses are able to participate at various levels thanks to the establishment of both voluntary and compliance carbon markets. Through the voluntary carbon market, businesses can create and offer carbon credits that are based on reductions in emissions.

Pakistan’s national and corporate climate goals will be fulfilled in the meanwhile thanks to the compliance market, which is still in its infancy. For companies looking to trade abroad, Pakistan’s carbon credits must be internationally recognised, which is ensured by the policy’s alignment with Article 6 of the Paris Agreement. 

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

Startups and SMEs: Where do they fit in?

Many businesses today run with sustainable practices such using renewable energy, reducing waste, or changing energy-efficient manufacturing procedures. However, they may be aware of these initiatives which could qualify to create carbon credits

But startups in sustainable packaging, green energy, and clean technology, as well as in green technologies, have a unique advantage because of government support of vital sectors such as agriculture, waste management, energy, and forestry.

By striving for sustainability, Pakistan’s private sector is already showing how businesses may implement carbon reduction into their operations. TPL Corp spokesman highlighted their efforts: “Our work on the Mangrove Biodiversity Park, in collaboration with the Sindh Forest Department, is an example of how businesses can contribute to carbon sequestration while protecting coastal ecosystems.”

This lays a framework for more companies to participate in carbon reduction projects, acting as a model for future enterprises and SMEs hoping to join the market, the private sector will keep becoming more important in developing Pakistan’s carbon market.

Government’s role in green investment

The government also recognises the potential of carbon markets in driving green investment. Aisha Moriani, Secretary, Ministry of Climate Change and Environmental Coordination, emphasised the importance of integrating businesses into this transition.

“Through this policy, we aim to accelerate clean technology deployment and attract investments in key sectors, including energy, agriculture, waste management, and forestry. Startups and SMEs have a crucial role to play in ensuring that carbon markets drive real, verifiable reductions while generating economic and social co-benefits,” she stated. 

Challenges

Despite the opportunities, startups and SMEs face significant challenges entering Pakistan’s carbon market. The high initial investment required for emission reduction projects and certification is a significant barrier, as smaller businesses lack the financial resources of larger corporations. Government incentives, grants, and partnerships, such as Pakistan’s Climate Change Fund, could help to reduce these barriers.

Awareness and education gaps further limit participation, as many businesses are unfamiliar with carbon trading regulations and processes. The Ministry of Climate Change and Environmental Coordination must implement training programs to provide SMEs with the necessary knowledge and tools.

Also Read: 5 smart ways to decarbonise supply chains and logistics with AI

Furthermore, complicated regulatory procedures remain a challenge. Prior to verification, businesses must go through several approval stages, including obtaining a Project Idea Note (PIN), Letter of Intent (LOI), and Project Design Document (PDD). Streamlining these processes could encourage more small and medium-sized enterprises to participate, making carbon trading more accessible to those outside of large corporations.

Opportunities

Since many governments tax high-carbon imports, carbon market participation might affect Pakistani enterprises moving abroad. Exporters risk trade restrictions without carbon reduction initiatives. Early adoption helps SMEs meet global sustainability criteria and attract foreign buyers.

With the help of grants and funding from USAID, the World Bank, and UN Environment Program, carbon-related investment opportunities are rising. Successful policy modification and implementation require financial incentives, training, and efficient processes. Thee corporate-startup partnerships could further speed carbon reduction, benefiting businesses and the environment.

A transformational opportunity for SMEs

Ultimately, Pakistan’s involvement in the world carbon market offers an opportunity for economic growth as well as an environmental one. Businesses, including sustainability into their strategies will have a big advantage as the world moves to low-carbon economies. Startups and SMEs who see the promise of carbon markets now will be more suited to receive funding, draw worldwide customers, and create strong business models that will survive in a future where sustainability is a need rather than a choice.

It may completely rethink how companies develop and compete in a climate-friendly world if properly utilised.

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Singapore- and Australia-based Cortical Labs, which develops a new class of artificial intelligence using human neurons, has launched the CL1, the world’s first commercial biological computer, at the Mobile World Congress in Barcelona.

This innovative technology fuses lab-cultivated neurons from human stem cells with hard silicon to create Synthetic Biological Intelligence (SBI), a more advanced and sustainable form of AI.

The CL1 presents vast opportunities in medical sciences and the technology sector. It aims to enhance drug discovery and testing, improve personalised medicine, and aid in early disease detection.

The CL1 can grow, adapt, and learn faster than purely silicon-based AI while consuming less energy. This could lead to greater automation, reduced energy consumption, and advancements beyond today’s Large Language Models (LLMs), offering new possibilities for autonomy in fields such as robotics.

Also Read: Cortical Labs, the startup behind DishBrain, closes US$10M financing round

Dr Hon Weng Chong, founder and CEO of Cortical Labs, stated that the CL1 is the culmination of a six-year vision to democratise this technology, making it accessible to researchers without specialised hardware and software.

Key features of the CL1:

• Available individually or in racks containing 30 units, each rack requires only 850  to 1,000 watts of energy.
• Fully programmable bi-directional stimulation and read interface, tailored for neural communication and network learning.
• An integrated system providing a perpetual embodiment of neural cultures within a custom perfusion life support system.
• Integrated development environment for rapid experimental iteration and applications.
  Python API for simple, real-time applications, giving the user full control.
• Touchscreen enabled to visualise system status, view live data, or run pre-packaged assays.
• Contained unit that does not require an external computer to operate; all recordings, applications, and life support are on the device.

Units and racks of the CL1 will be manufactured to order and shipped to specialised laboratories and facilities with cell-growing capabilities before the end of Q2. Cortical Labs also offers wetware-as-a-service (WaaS), enabling remote access to cultivated cells via the cloud for application development.

In 2022, Cortical Labs’s neurons learned to play Pong, demonstrating synthetic biological intelligence through rapid learning and goal-directed behaviour when embedded in a simulated game environment. The neurons physically grow across a silicon chip with pins that send and receive electrical impulses, creating a high-bandwidth connection between an organic neural network and a digital world. The Biological Intelligence Operating System (biOS) constructs their reality by sending information via electrical signals and converting neuron activity into actions.

In April 2023, Cortical Labs closed a US$10 million financing round led by Hong Kong-based Horizons Ventures. The round also saw participation from LifeX Ventures, Blackbird Ventures, In-Q-Tel, and Radar Ventures.

 

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The question at hand—analysing the retreat of global risk sentiment amid soft US economic data, tariff threats, and shifting dynamics in digital asset markets—offers a fascinating lens into the interconnectedness of today’s economic landscape. Below, I’ll provide my detailed take on these events, weaving together the facts, data, and my own perspective, dissecting the ebb and flow of markets and policy decisions.

Let’s start with the US economic data, which has undeniably cast a shadow over global risk sentiment. The latest ISM manufacturing index figures were a mixed bag, but the overriding tone was one of disappointment. The headline index underwhelmed market expectations, signalling a slowdown in manufacturing activity—a critical pillar of the US economy.

Even more concerning were the sub-indices: employment and new orders, both vital indicators of future growth, slipped unexpectedly into contraction territory. This wasn’t just a minor blip; it hinted at deeper structural challenges, potentially exacerbated by uncertainty over trade policies.

Meanwhile, the prices index surged, a move that caught many off guard. This spike aligns with growing fears about inflationary pressures tied to President Donald Trump’s tariff rhetoric. When you consider that tariffs on imports from Canada, Mexico, and China could raise input costs for manufacturers, it’s no surprise that the prices index is flashing warning signs. My view here is that the US economy is at a crossroads—softening activity paired with rising costs could squeeze profit margins and dampen business confidence further, especially if trade tensions escalate.

The market reaction to this data, compounded by Trump’s tariff announcements, was swift and brutal. Stocks sank to session lows, with the MSCI US index posting its worst day of the year so far, down 1.8 per cent. Sector-specific declines were even more pronounced—Energy, Information Technology, and Consumer Discretionary took the hardest hits, dropping 3.5 per cent, 3.5 per cent, and 2.3 per cent, respectively.

This wasn’t random; these sectors are particularly exposed to trade disruptions. Energy firms, for instance, rely on stable commodity flows, while tech and consumer discretionary companies often depend on global supply chains that could be upended by tariffs. Trump’s declaration that there’s “no room left” to negotiate a halt to the 25 per cent tariffs on Canada and Mexico, alongside an additional 10 per cent levy on Chinese goods, sent a clear message: he’s doubling down on protectionism.

From my perspective, this stance risks igniting a broader trade war, one that could reverberate beyond US borders. Canada and Mexico, key trading partners under the USMCA, might retaliate, while China’s response could further complicate an already fragile global trade environment. The immediate market sell-off reflects this fear, but I suspect the longer-term impact—on growth, inflation, and investor confidence—could be even more profound.

Also Read: Global markets steady as PCE data softens, Trump names Bitcoin in strategic reserve

Turning to the bond market, we saw a flight to safety that pushed Treasury yields lower. The benchmark 10-year Treasury yield slid more than 6 basis points to 4.16 per cent, while the 2-year yield dipped about 4 basis points to 3.96 per cent. This drop suggests investors are seeking refuge amid the uncertainty, betting that weaker economic data and trade risks might force the Federal Reserve to reconsider its rate path.

Personally, I think this yield movement also reflects a growing disconnect between market expectations and Fed rhetoric. The Fed has signalled a cautious approach to rate cuts, but if manufacturing continues to falter and tariffs stoke inflation, we could see a tricky balancing act ahead—supporting growth without letting price pressures spiral out of control.

The US Dollar Index, meanwhile, slipped 0.8 per cent, a move I attribute to both the softening data and a broader risk-off mood. A weaker dollar, however, provided a tailwind for gold, which rose 1.2per cent after hitting a three-week low in the prior session. Gold’s resurgence as a safe-haven asset makes sense here; with trade wars looming and economic signals faltering, investors are hedging their bets. I’ve always viewed gold as a barometer of fear, and its uptick tells me that unease is simmering beneath the surface.

Commodities offered another angle on this story, with Brent crude plunging 2.1 per cent after OPEC+ confirmed plans to ramp up production starting in April. This decision defied earlier expectations of a delay, adding downward pressure on oil prices already rattled by tariff concerns.

From my standpoint, OPEC+’s move is a calculated gamble—boosting supply could stabilise markets in the short term, but if global demand weakens due to trade disruptions, they might overshoot. Energy stocks, already reeling from the MSCI US decline, felt this sting acutely. It’s a reminder that even as US-centric policies dominate headlines, global players like OPEC+ retain significant sway over market dynamics.

Across the Atlantic, Europe presented a contrasting picture. Equity indices closed near session highs, buoyed by gains in defense stocks as hopes of increased military spending grew. This optimism ties into the fragile geopolitical landscape, particularly Trump’s decision to pause US military aid to Ukraine—a move that followed a contentious Oval Office meeting. I see this as a pivotal shift; with US support waning, European nations may feel compelled to bolster their own defenses, especially amid ongoing tensions with Russia.

Also Read: Global markets on edge: Trade wars, tariffs, and crypto chaos in focus

On the economic front, Eurozone inflation eased to 2.4 per cent year-over-year in February, down from 2.5 per cent in January, slightly above consensus forecasts. This modest cooling keeps the European Central Bank (ECB) on track for a rate cut at its upcoming meeting, a view shared by most market participants.

I’d argue this is a sensible move—Europe’s economy needs stimulus to offset external pressures, including potential fallout from US tariffs. The brighter equity performance in Europe, against the US’s gloom, underscores how regional dynamics can diverge even in a globally linked market.

Then there’s the wild card: digital assets. The euphoria surrounding Trump’s March 2 announcement of a strategic crypto reserve—featuring Bitcoin, Ether, XRP, SOL, and ADA—quickly gave way to skepticism by March 3. Initially, the news sparked a rally, with cryptocurrencies rebounding from their worst month since 2022 (the Bloomberg Galaxy Crypto Index had slumped nearly 28 per cent in February).

Trump’s inclusion of lesser-known tokens like XRP, SOL, and ADA alongside heavyweights Bitcoin and Ether was bold, even visionary to some. It suggested a US government embrace of digital assets as a strategic asset class, potentially legitimising crypto in ways unseen before. But as the day wore on, doubts crept in. Investors began questioning the feasibility and merits of holding such a diverse basket, especially as tariff news soured risk sentiment.

By late afternoon in New York, most of the prior day’s gains evaporated, with the Nasdaq 100 Index—tech-heavy and crypto-correlated—dropping over 2 per cent. My take? The crypto reserve idea is intriguing, but its timing couldn’t be worse. With tariffs threatening economic stability, the appetite for speculative assets like crypto wanes. I suspect this volatility reflects a broader tension: crypto’s promise as a hedge or store of value versus its sensitivity to macroeconomic shocks.

Stepping back, the global risk sentiment retreat feels like a confluence of self-inflicted wounds and external shocks. The US’s soft data patch—evident in the ISM figures—signals a domestic slowdown that tariffs could exacerbate. Trump’s hardline trade stance, while politically resonant, risks alienating allies and inflating costs at a delicate moment. Europe’s relative resilience offers some hope, but it’s tempered by geopolitical fragility, notably around Ukraine.

And in the digital realm, crypto’s rollercoaster ride mirrors the broader uncertainty. Asian markets, opening lower, and US futures, hinting at a rebound, suggest we’re in for more choppiness. As a journalist, I’d say this moment demands vigilance—markets are pricing in risks, but the full fallout of these policies remains unclear. If Trump’s tariffs stick, we could see a prolonged drag on growth; if they falter under pressure, sentiment might recover.

For now, I’m watching the Fed, the ECB, and the crypto space closely—each holds a piece of this intricate puzzle.

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For decades, sari-sari stores have been an integral part of Filipino communities, serving as go-to outlets for daily essentials. However, these small businesses often face economic difficulties, limited financial access, and operational inefficiencies. Recognising these challenges, Packworks, a Philippine-based startup, has developed a business-to-business (B2B) platform designed to digitise and streamline sari-sari store operations.

Founded in 2018 by Bing Tan, Ibba Bernardo, and Hubert Yap, Packworks emerged from the founders’ firsthand observations of the difficulties faced by small store owners in remote areas. Initially designed to serve a handful of multinational companies’ sari-sari store partners, the platform has since evolved into a nationwide solution that connects small businesses with brands, wholesalers, and financial institutions.

Before adopting digital tools, sari-sari store owners relied on manual methods for inventory management, sales tracking, and sourcing products. They often purchased stock from supermarkets and wholesalers, incurring high operational costs due to fuel expenses and retail markups.

“At Packworks, we identified these challenges and developed a digital solution to help these businesses operate with maximum gain, greater security, and access to goods and financial services,” said the company. “By connecting sari-sari store owners directly with brands and retailers, we offer them access to a variety of cheaper goods compared to supermarkets or grocery stores.”

Moreover, Packworks collaborates with financial institutions to provide microloans to store owners, helping them manage cash flow and withstand market pressures. With a network of over 300,000 sari-sari stores, the platform serves as a bridge between grassroots entrepreneurs and essential financial services.

Also Read: How soonicorn GrowSari plans to expand its reach to 300K sari-sari stores in Philippines

The adoption of digital tools has transformed the operations of many sari-sari stores. According to Packworks, larger stores that partnered with the platform have seen sales growth of between 34 and 51 per cent.

“One of the innovative initiatives we implemented was deploying Starlink connectivity in partnership with Help.NGO, AWS, and Starlink,” the company explained. “By providing these sari-sari stores with internet access, they were able to fully utilise the Packworks app, significantly optimising their operations. Additionally, offering free Wi-Fi to customers created a community hub that led to a 50 per cent increase in transactions.”

Beyond operational efficiencies, connectivity has enabled these businesses to become digital hubs, offering essential services to local communities. While the technology is crucial during natural disasters, it also plays a vital role in day-to-day commerce, allowing store owners to adapt and thrive in an increasingly digital economy.

The unique traits of sari-sari store owners

Sari-sari store owners display distinct entrepreneurial behaviours as they transition to digital platforms. Packworks has observed that these micro-entrepreneurs maintain a strong community-centric approach. Many extend informal credit to regular customers, reinforcing the communal bond that ties their business success to the well-being of their neighbourhoods.

Additionally, sari-sari store owners are highly adaptable and strategic in sourcing products. “They consistently compare prices across wholesalers, supermarkets, and digital platforms to ensure they get the best deals,” the company noted. “They are also highly adaptable, evolving their product offerings based on community needs and competitive trends.”

Unlike traditional retailers, these store owners prioritise long-term partnerships over transactional relationships. Packworks aims to support this mindset by positioning itself as a strategic partner rather than just a service provider.

Peer influence plays a crucial role in encouraging sari-sari store owners to embrace digital tools. As digital transactions become more prevalent, more store owners are shifting towards online banking, digital payments, and inventory management solutions.

“Sari-sari stores have long adapted to meet the needs of their communities,” Packworks said. “With digitisation, store owners gain a deeper understanding of their customers, respond to evolving market needs, and maintain their role as vital social hubs.”

Also Read: Promoting digital payments in the Philippines: Why last-mile communities are key

Looking ahead

Packworks continues to develop new features to further empower sari-sari store owners. Among the upcoming initiatives are expanding internet access to remote stores, enabling better operations and community engagement; deploying digital LCD signs that display targeted promotions based on sales data, allowing FMCG brands to run targeted deals through sari-sari stores, and using a research grant from the Department of Science and Technology (DOST) to develop AI-powered insights for sales trends and inventory management.

Packworks envisions transforming sari-sari stores into digital hubs that not only sustain small businesses but also bring essential services closer to communities. By leveraging technology, it aims to ensure that micro-retailers remain competitive, resilient, and well-integrated into the evolving digital economy.

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Image Credit: Packworks

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As artificial intelligence (AI) adoption accelerates, companies across the Asia Pacific (APAC) face increasing regulatory scrutiny.

A new report highlights that 77 per cent of businesses are already subject to AI-related regulations or expect to be within five years. Additionally, 90 per cent anticipate compliance obligations related to AI-adjacent laws, including cybersecurity, data protection, and consumer rights.

Also Read: Why Generative AI requires a paradigm shift in technology and culture

Governments across APAC are responding swiftly. Singapore, a leader in artificial intelligence governance, has introduced multiple initiatives, including AI Verify, the Model AI Governance Framework for Generative AI, and Safety Guidelines for Model and App Developers.

India has taken steps with the Digital Personal Data Protection Act 2023 and an AI regulatory sandbox. Australia is proposing mandatory guardrails for high-risk AI applications, while Saudi Arabia has rolled out AI ethics guidelines and generative AI regulations.

South Korea took a significant step in 2023 by introducing an AI liability law, setting a precedent for how businesses must manage AI risks.

Other countries, including China and Brazil, are also refining intellectual property and copyright laws to account for artificial intelligence-generated content.

Businesses struggle with AI risks despite revenue potential

While business leaders acknowledge the value of responsible AI, many remain unprepared to manage its risks effectively. Research suggests that companies pioneering responsible artificial intelligence could see an 18 per cent increase in AI-related revenue, yet most organisations lack comprehensive risk mitigation strategies.

One of the biggest challenges is underestimating the scale of artificial intelligence risks and the regulatory landscape’s complexity. Without robust compliance frameworks, companies risk falling behind as governments ramp up enforcement efforts.

“Organisations that fail to implement responsible artificial intelligence governance will struggle to scale AI innovation while meeting regulatory expectations,” the report warns.

The road to responsible AI leadership

To navigate the evolving AI landscape, businesses must adopt a proactive approach to responsible AI. Experts outline five key priorities for organisations aiming to mitigate risks while driving innovation:

• Establish AI governance and principles: Develop clear policies, guidelines, and controls to ensure artificial intelligence is deployed ethically.
• Conduct AI risk assessments: Systematically evaluate and categorise risks across artificial intelligence use cases.
• Enable responsible AI testing: Integrate third-party tools and services for continuous risk assessment.
• Implement ongoing monitoring and compliance: Build dedicated artificial intelligence compliance teams to oversee model performance and ethics.
• Address workforce impact, privacy, and security: Ensure employees have the right skills to manage AI responsibly while safeguarding data and consumer rights.

APAC’s AI future: Balancing innovation and regulation

As AI regulations evolve, businesses must align artificial intelligence strategies with compliance mandates to maintain a competitive edge. Industry pioneers already place responsible AI at the core of their digital transformation, ensuring risk mitigation is a strategic advantage rather than a regulatory burden.

Also Read: How are the companies you invest in leveraging AI?

By embracing responsible AI, APAC companies can turn regulatory pressure into business value, positioning themselves for sustainable growth in the AI-driven economy.

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AI and digital transformation are redefining the global economic landscape, and Southeast Asia is no exception. With a young population and one of the fastest technology adoption rates in the world, several industries are undergoing major changes. But which industries are experiencing the most profound shifts, and how does the mass adoption of AI impact the local workforce

Manufacturing and automation

Southeast Asia, particularly countries like Thailand, Indonesia, and Vietnam, is a global manufacturing hub. The rise of automation and Industry 4.0 is significantly disrupting this sector.

• The electronics industry in Vietnam: Companies such as Samsung and Foxconn have heavily invested in the robotisation of their assembly lines. The result: increased productivity but also a reduced demand for low-skilled labour. Therefore, many workers must retrain for roles in machine maintenance or automated supply chain management.
• AI impact – Predictive maintenance and quality control: Artificial intelligence can predict failures before they occur, reducing production interruptions. AI-assisted vision systems also improve quality control, minimising the need for human inspections. For example, Siemens already uses AI solutions to analyse the performance of industrial equipment in real-time.

E-commerce and digital services

With the rise of e-commerce and digital payments, the retail industry is undergoing a major transformation. Companies like Lazada and Shopee have redefined consumer habits in the region.

• Digitalisation of markets in Indonesia:  Tokopedia and Gojek have enabled small merchants to go digital. While this has created new opportunities, it has also put traditional sellers at a disadvantage if they struggle to adapt to digital tools quickly.
• AI impact – Personalised recommendations and inventory management: AI analyses consumer preferences and optimises product recommendations, boosting online sales. Additionally, it enhances inventory management by accurately forecasting demand. Alibaba and JD.com utilise these technologies to refine their offerings and improve customer experience.

Also Read: The agritech challenge in Indonesia: Can AI and mobile apps enhance productivity?

Transport and logistics

The rise of digital platforms has disrupted the transportation sector. Ride-sharing and on-demand delivery services have created new opportunities but have also pressured traditional business models.

• Grab and the gig economy in Malaysia: Grab, based in Singapore but dominant in Malaysia, has created thousands of jobs for drivers and delivery personnel. However, these jobs remain precarious, lacking social security and stable income guarantees, prompting governments to reconsider labour regulations.
• AI impact – Route optimisation and predictive fleet management: AI helps transport companies optimise routes, reducing fuel costs and improving delivery speeds. Predictive fleet management systems also improve vehicle maintenance. DHL and FedEx have invested in these technologies to enhance logistics efficiency.

Agriculture and smart technologies

Agriculture, a vital economic pillar in many Southeast Asian countries, is also undergoing significant changes with the adoption of the Internet of Things (IoT) and artificial intelligence.

• Precision agriculture in Thailand: Companies like Ricult and E-fishery in Thailand use AI and drones to optimise crop yields and reduce water waste. While this boosts efficiency, it also requires farmers to develop digital skills to remain competitive.
• AI impact – Soil analysis and crop forecasting: AI provides farmers with precise recommendations for irrigation and fertiliser usage based on weather conditions and soil data. John Deere and Bayer are developing AI-based solutions to enhance agricultural practices.

Finance and fintech

Fintech is revolutionising banking services in Southeast Asia, where many individuals still lack access to traditional financial institutions.

• The rise of fintech in the Philippines: GCash and PayMaya enable millions of unbanked Filipinos to access online payments and credit. However, this transformation has also led to job reductions in physical bank branches, pushing employees toward specialised roles in data analytics and cybersecurity.
• AI impact – Customer service automation and fraud detection: AI-powered chatbots are replacing human advisors in customer service roles. Additionally, machine learning algorithms detect fraudulent transactions in real-time, enhancing financial security. Companies like BPCE Groupe or Revolut leverage these technologies to improve user experience and security.

Also Read: The art of balancing speed and sustainability in a fast-paced world

Towards a more skilled workforce?

AI and digital transformation in Southeast Asia present both opportunities and challenges. While they create new jobs, they also make certain professions obsolete. To mitigate these effects, governments and businesses must invest heavily in workforce training and digital skills development to ensure a smooth transition into this new era of work.

AI and digital transformation bring both opportunities and challenges to Southeast Asia. While they create new jobs, they also make certain professions obsolete. To adapt, industries should invest heavily in workforce training and digital skills development to ensure a smooth transition into this new era of work.

• Re-skill the workforce: Invest in AI, automation, and data training programs to help workers transition into new roles.
• Promote lifelong learning: Educational institutions should integrate digital and AI-focused courses to prepare future professionals.
• Support SMEs in digital adoption: Provide more et focused financial aid, training, and access to technology to help small businesses stay competitive.
• Regulate the gig economy: Ensure fair wages, job security, and benefits for gig workers affected by automation and the massive adoption of AI.

By adopting these strategies, Southeast Asian industries can smoothly transition into an AI-driven economy while ensuring job security and workforce adaptability.

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