Posted on

Optimising AI frameworks for a decentralised AI (DeAI) future

The concept of decentralised artificial intelligence (DeAI) has recently gained significant traction, with experts and institutions debating its feasibility, challenges, and potential impact. Unlike traditional centralised AI models, which are controlled by a few powerful organisations, DeAI aims to distribute AI capabilities across a broad network, ensuring greater accessibility, transparency, and efficiency.

Leading voices in AI research and development, such as the MIT Media Lab, the Linux Foundation, and major media outlets like Forbes, have all weighed in on DeAI. MIT Media Lab emphasises the need for personalised AI agents and the democratisation of AI, countering the current monopolisation of the industry.

It highlights the challenges of centralised AI, such as limited data access due to data silos, lack of transparency, and concerns about trust and accountability. Their call for businesses to adopt decentralised models is echoed by the Linux Foundation, which published a detailed 54-page report in November 2024 outlining how autonomous AI agents can function independently within decentralised networks while maintaining privacy, exemplified by zero-knowledge proofs.

Meanwhile, Forbes published an article in February 2025 underscoring the benefits of open-source AI, advocating against AI models being locked behind paywalls and proprietary systems. Their article stated, “Success in AI relies on collective input, demands vast, diverse datasets, and continuous collaboration.”

The question remains: How can the vision of DeAI be turned into reality? What technical challenges must be overcome to achieve decentralised AI, and what role can AI frameworks play in this transformation?

Challenges and solutions in AI frameworks for DeAI

The foundation of DeAI lies in robust AI frameworks that enable AI agents to operate in a decentralised environment. However, existing frameworks are not yet optimised for this shift. Here’s a list of the key challenges that AI frameworks face along with their solutions.

High technical barrier-to-entry for non-developers and democratising AI agent development

Most AI development frameworks require a deep understanding of programming, machine learning models, and infrastructure deployment. The complexity of developing AI models and deploying them in real-world applications limits participation to a small group of highly skilled engineers and data scientists. This restricts the widespread adoption of DeAI by non-technical users and organisations that could otherwise benefit from AI-driven solutions.

Solution: The democratisation of AI agent development should be a top priority for companies. Democratisation can be achieved by fostering collaboration between AI companies or open-source frameworks that remove high technical barriers-to-entry for non-developers.

An example is aevatar.ai, an open-source no-code framework for AI agents, which allows anyone to create, deploy, and utilise AI agents using an intuitive prompt system. Its first use case is a multi-LLM-driven mining ecosystem called MineAI. Mine AI is the first AI agent PVP mining system, allowing users to utilise natural languages as prompts to mine, defend, and attack with dynamic strategies. By eliminating technical barriers, these platforms expand AI adoption and innovation.

Isolated AI agent ecosystems and multi-LLM and multi-agent AI frameworks

Today’s AI frameworks are restricted by proprietary systems, preventing seamless communication between AI agents across different platforms. These isolated ecosystems hinder collaboration, limit interoperability, and prevent AI agents from leveraging complementary capabilities.

This results in inefficiencies where AI models cannot share insights, making them less effective in tackling complex tasks that require diverse knowledge sources. While the Model Context Protocol (MCP) is emerging as a promising solution to address this challenge, several unresolved pain points persist, requiring further development and refinement to ensure seamless agent-to-agent communication.

Solution: A true DeAI ecosystem requires seamless interaction between multiple AI agents, even if they operate on different language models and platforms. Since different LLMs serve different purposes, creating a multi-LLM AI framework that enables siloed AI agents to communicate with one another seamlessly would allow AI agents to produce more holistic results.

Also Read: Navigating market trends and risks: Leveraging GenAI in banking treasury functions in APAC

Developing a universal translator that supports agent-to-agent communications across different languages, platforms, and industries is crucial to ensuring each agent can adapt to diverse scenarios and optimise performance. A decentralised communication protocol for AI agents would further eliminate reliance on centralised intermediaries, enabling AI to function autonomously across various domains.

Lack of scalability in AI frameworks and enhancing scalability through multi-model AI frameworks

Current AI frameworks often depend on a single language model (LLM), restricting their flexibility. A single LLM limits the adaptability of AI agents, especially in decentralised networks where multiple AI agents must interact across diverse environments and applications.

Additionally, computational constraints limit the scale at which AI models can operate efficiently. As AI systems grow in complexity, bottlenecks in processing power, data throughput, and response time become increasingly apparent, making it difficult to deploy large-scale AI networks efficiently.

Solution: Instead of relying on a single LLM, decentralised AI networks must support multiple models that work together to optimise decision-making. This approach enables AI agents to process data with much higher relevance and adapt to changing contexts.

Scaling AI frameworks through decentralised computing infrastructures, such as distributed AI model hosting, will further enhance scalability and reduce reliance on centralised cloud providers. Additionally, leveraging modular AI architectures—where individual AI components can be dynamically loaded and updated—would enable more efficient scalability and adaptability to evolving tasks and requirements.

Lack of decentralised access to off-chain data and AI oracles as a bridge between AI and blockchain networks

AI agents operating within decentralised frameworks often lack access to off-chain data, which limits their functionality and decision-making capabilities. Without reliable access to external datasets, AI agents risk becoming isolated and ineffective in real-world applications.

Solution: AI oracles act as intermediaries, allowing smart contracts to access and process off-chain data securely and verifiably. AI oracles are crucial in enabling decentralised AI networks to interact with real-world data while maintaining decentralisation. By integrating AI oracles, decentralised AI agents can operate in a dynamic environment without relying on central authority to validate data.

Also Read: AI disruption unveiled: Hidden opportunities for startup survival and success

This ensures AI-driven decision-making remains decentralised while benefiting from external real-time data feeds. Additionally, AI oracles leveraging cryptographic techniques such as zero-knowledge proofs can ensure data authenticity without compromising user privacy, further strengthening trust in decentralised AI ecosystems.

The future of DeAI

By addressing these key challenges and implementing advanced AI frameworks, we can realise the vision of a decentralised AI ecosystem. The future of DeAI would have features such as an open-source marketplace for AI agents. A decentralised AI marketplace would allow individuals and enterprises to discover, develop, manage, and deploy AI agents at scale automatically. This ecosystem would function similarly to open-source software repositories, fostering collaboration and innovation among AI developers and users.

In addition, customisable AI agents for business and personal use should be a fundamental feature. Enterprises and individuals will be able to generate AI agents tailored to their specific needs, integrating them seamlessly into existing workflows. These AI agents could range from customer support bots to highly creative AI-driven content generators.

By enabling a user-friendly, scalable, and transparent DeAI system, we can ensure that AI development and deployment remain accessible to all, rather than being monopolised by a few large corporations.

Conclusion

The shift towards decentralised AI requires overcoming significant technological and structural challenges. Current AI frameworks must evolve to reduce technical barriers, foster interoperability, and enhance scalability. By leveraging AI oracles, multi-LLM frameworks, and no-code AI development platforms, we can move closer to a truly decentralised AI ecosystem.

The future of AI should not be locked behind proprietary walls—it must be open, collaborative, and accessible to all. DeAI is not just a vision; it is an achievable reality if we optimise AI frameworks for a decentralised future.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image courtesy of the author.

The post Optimising AI frameworks for a decentralised AI (DeAI) future appeared first on e27.

Posted on

Unlocking the potential of ESOPs: A comprehensive guide for startups and employees

In the fast-paced world of startups, attracting and retaining top talent is a challenge that requires a combination of creativity and financial prudence. One of the most effective tools for addressing these challenges is the Employee Stock Ownership Plan (ESOP), which not only gives employees a stake in the company but also aligns their success with the business’s long-term goals.

However, for all their benefits, ESOPs are not without complexity. This article aims to break down the key elements of ESOPs, offering actionable advice for startups on structuring them effectively and guiding employees on maximising their personal financial outcomes.

What is an ESOP?

At its core, an ESOP is a program that allows employees to acquire shares in the company, usually at a discounted or predetermined price. Unlike traditional compensation models that rely purely on salary and bonuses, ESOPs offer employees ownership in the business, typically through stock options or restricted stock units (RSUs).

The phrase “skin in the game” often gets tossed around when discussing ESOPs, but what does that really mean? For companies, it signals a shift toward a partnership model, where employees are not just workers but shareholders who benefit directly from the company’s growth. For employees, it can mean substantial upside if the company performs well — but it also comes with risks, particularly for startups where success is far from guaranteed.

In essence, an ESOP is about creating alignment. When employees have a financial stake in the company’s success, they are more likely to go above and beyond to ensure its future. This has been proven by companies like Google, Facebook, and Microsoft, where early employees reaped significant rewards from their ESOPs.

Objectives of ESOPs: Why companies use them

Startups typically operate in a cash-constrained environment. High salaries can drain vital resources, especially in the early stages when a company is pre-revenue or barely breaking even. ESOPs offer a solution by allowing companies to conserve cash while still providing meaningful compensation. This can be particularly attractive in industries where top talent is fiercely competitive, such as technology and biotechnology.

However, ESOPs are not just a cash-saving mechanism. They are a strategic tool for rewarding performance and creating a sense of ownership among employees. A well-structured ESOP can have the following key benefits:

  • Boosting retention: One of the main reasons companies introduce ESOPs is to retain employees. Stock options typically vest over a period (commonly four years), meaning employees only fully “own” their shares if they stay with the company for the long haul. This ensures that key employees are less likely to jump ship for another offer, knowing that leaving too soon could mean forfeiting valuable stock options.
  • Attracting top talent: Especially in highly competitive markets like Silicon Valley, high-growth startups need to be able to attract top-tier talent without breaking the bank. Offering stock options as part of the compensation package can bridge that gap by offering potential for future wealth, even if the starting salary isn’t as high as what might be offered by a more established company.
  • Incentivising performance: When employees are also shareholders, their goals tend to align more closely with those of the company. This translates to a workforce that is motivated to work toward the company’s success, knowing that their stock options will increase in value as the company grows.
  • Wealth creation: Perhaps the most compelling reason for employees to participate in ESOPs is the potential for substantial financial gain. For example, early employees of Airbnb and Uber saw their stock options turn into millions of dollars once these companies went public. This kind of wealth creation is one of the most appealing aspects of an ESOP, especially for employees at high-growth startups.

Also Read: The best new year resolutions for startup founders: Offering ESOPs that actually work

How does an ESOP work?

While the basic mechanics of an ESOP are straightforward, it’s important to dive deeper into the process of vesting, exercising options, and employee rights. Here’s a step-by-step breakdown:

  • Creation: The company establishes a stock option program, reserving a portion of the equity for the ESOP. This percentage is known as the ESOP pool and typically ranges from 10 to 15 per cent of the company’s total shares. This pool size is critical — it determines how many options the company can grant and affects equity distribution, which may impact future funding rounds.
  • Granting: Once the pool is created, the company grants options to eligible employees. The number of options an employee receives is often based on their role, seniority, and potential impact on the company’s success.
  • Vesting period: Stock options do not become the employee’s property immediately. Instead, they vest over time, often through a four-year schedule with a one-year cliff. This means employees must work for at least one year to receive any shares at all, and after that, shares vest monthly or annually. This ensures that the employee remains committed to the company for a longer period.
  • Exercise: After options have vested, employees have the right to buy shares at the exercise price (also known as the strike price), which is usually set at the company’s valuation at the time of the grant. If the company has grown significantly, the market price may be much higher than the exercise price, offering employees the opportunity to purchase shares at a discount.
  • Sale: Eventually, employees may decide to sell their shares, either on a secondary market (if the company allows it), through a buyback program, or during a liquidity event like an IPO or acquisition.

It’s essential for employees to understand the implications of each of these steps, particularly when it comes to taxation and the financial commitment involved in exercising options.

Also Read: 3 things first-time founders should know about ESOP implementation

Types of stock grants: RSUs, options, and phantom shares

Understanding the different types of stock options available is key to making informed decisions as an employee. The most common types include:

  • Restricted stock units (RSUs): With RSUs, employees are granted company shares after meeting specific vesting conditions. RSUs differ from traditional stock options in that there is typically no exercise price. Once the shares vest, they belong to the employee outright. However, they may still be subject to restrictions, such as being unable to sell until a liquidity event occurs.
  • Stock options: This is the most common type of grant in an ESOP. Employees are given the option to purchase shares at a set price after the vesting period. The key advantage here is that if the company’s valuation increases, employees can exercise their options and buy shares at a lower price, potentially resulting in a significant financial gain. The downside is that stock options can expire if not exercised within a set timeframe.
  • Phantom shares: These are not real shares but are designed to mimic the value of company stock. Employees receive cash bonuses equivalent to the value of a certain number of shares. Phantom shares can be advantageous for companies that want to offer the financial benefits of stock ownership without diluting equity.

Taxation of ESOPs

Tax implications are one of the most important factors for employees to consider. Generally, taxation occurs at two points:

  • At the time of exercise: When an employee exercises their stock options, the difference between the exercise price and the fair market value of the shares is considered income and is taxed accordingly. This can be a significant tax burden, especially if the company’s valuation has skyrocketed.
  • At the time of sale: Once an employee sells their shares, any profit made is subject to capital gains tax. If the shares are held for over a year, they are taxed at the lower long-term capital gains rate, which can be a key tax advantage.

Tax laws around ESOPs vary greatly from country to country, so employees need to consult with financial and tax professionals to fully understand their obligations. For instance, in the US, Incentive Stock Options (ISOs) are taxed differently than Non-Qualified Stock Options (NSOs), with the former potentially offering more favourable tax treatment.

Best practices for setting up ESOPs

Startups need to approach the design and implementation of an ESOP with careful planning. Here are some best practices:

  • Appropriate ESOP Pool: Startups should aim to reserve 10–15 per cent of total equity for the ESOP pool. However, this percentage should be reassessed as the company grows, particularly after major funding rounds. Founders must strike a balance between offering enough equity to attract top talent without excessively diluting their ownership stake.
  • Timing: Setting up the ESOP before significant fundraising rounds is crucial. Once external investors come on board, renegotiating the ESOP pool becomes more complicated, as additional stock options dilute the investors’ equity stakes.
  • Custom vesting schedules: While a four-year vesting schedule is common, companies should consider tailoring vesting schedules to specific roles. For example, senior leadership might have a longer vesting period to ensure they remain committed through critical growth phases, while shorter vesting periods can be offered to key hires in high-demand roles.
  • Regular valuation updates: As startups scale, the company’s valuation will fluctuate. Regularly updating the company’s valuation ensures that stock grants reflect the company’s current value, helping employees better understand the potential worth of their equity.

Also Read: How can you make your ESOPs work for you?

Liquidity opportunities for employees

The biggest question employees often have about ESOPs is when they can cash in their shares. While ESOPs can offer significant upside, the road to liquidity is often unclear. Here are some common liquidity opportunities:

  • Secondary markets: Some startups allow employees to sell their shares on private secondary markets before the company goes public. This can be an excellent option for employees seeking liquidity without waiting for an IPO or acquisition.
  • Buyback programs: Many companies offer buyback programs, where employees can sell shares back to the company at a predetermined price. This can be especially beneficial for employees who want liquidity but don’t want to wait for a public exit.
  • Company exit: In the event of an IPO or acquisition, employees often have the opportunity to sell their shares. While this is the most lucrative option for many, it also comes with its risks, as the timing of such events is often unpredictable.

Conclusion

ESOPs are a powerful tool for startups and employees alike, offering the potential for financial gain while aligning the interests of the workforce with the company’s success. For companies, they are a critical means of attracting, retaining, and incentivising talent without straining cash flow. For employees, ESOPs represent an opportunity for wealth creation and a direct stake in the company’s future.

However, ESOPs are not without their challenges. Both companies and employees need to be aware of the complexities around vesting, exercising, and taxation to make the most of this arrangement. With careful planning and execution, ESOPs can be a win-win strategy that drives long-term success for all stakeholders involved.

Thanks to Gagan Singh, CEO of WOWS Global for the insights that allowed to put this article together.

This article was originally published on “The Startup Booster”, our Substack on startups and tech in Southeast Asia.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image courtesy of the author.

The post Unlocking the potential of ESOPs: A comprehensive guide for startups and employees appeared first on e27.

Posted on

Automation, not apps: The next frontier in Southeast Asia’s F&B tech innovation

A new report from Velocity Ventures highlights a significant lack of innovation within Southeast Asia’s food & beverage (F&B) sector, which presents a fertile ground for tech startups.

The Innovation & Deal Flow Report 1Q2025 [F&B] reveals that while the global F&B market offers attractive yields driven by technology adoption, advancements in Southeast Asia have been largely confined to point-of-sale (POS), food delivery, and revenue management systems.

The report underscores the urgent challenges of food security and labour shortages as key drivers for a growing need for automation technologies across the region’s industry. Velocity Ventures observes a significant opportunity for solutions to enhance efficiency and safety and reduce reliance on manual labour.

Also Read: How virtual restaurant brands are helping traditional restaurants to digitise

This insight suggests that startups focusing on smart kitchen appliances, which are experiencing a forecasted 17.9 per cent compound annual growth rate (CAGR) globally, could find strong traction in Southeast Asia.

Interestingly, the report notes the continued popularity of grocery e-commerce platforms, indicating a sustained preference among consumers and restaurants for convenient and straightforward systems.

This trend, coupled with the global top 3 highest CAGR of grocery e-commerce at 28.09 per cent, with a corresponding top 3 increase in CAGR of +16.39 per cent, signals a robust market for startups in this vertical within Southeast Asia.

Conversely, the global demand for craft spirits appears to be declining significantly, with a top 3 decrease in CAGR of -17.79 per cent. This global trend might have implications for craft spirit producers and related businesses in Southeast Asia.

Similarly, loyalty and rewards and restaurant management software are also experiencing decreases in CAGR globally, at -8.4 per cent and -6.9 per cent, respectively.

While the report provides a global overview, Velocity Ventures, which identifies itself as Southeast Asia’s leading travel and hospitality tech investor, has reviewed over 250 startups annually. Its proprietary deal pipeline includes a Nigerian online food delivery platform operating virtual restaurants that raised US$2 million in seed funding at a US$10 million pre-money valuation in January 2025.

It also features an Indonesian food technology company focused on ready-to-eat meals using innovative preservation methods, seeking US$2 million in seed funding at a US$11 million pre-money valuation as of March 2025 (referred to as Project F10).

Also Read: Digital transformation and AI revolution: Shaping Singapore’s F&B industry with Korean restaurant tech

Project F10 highlights a strategic rationale focused on solving global food access challenges, diversified revenue streams (B2C, B2B, B2G), and scalability through automated systems. Its technology includes patented drying and heat-based preservation processes, offering OEM white-label solutions and branded meals.

Furthermore, the report spotlights GrubMarket, a US-based AI-powered B2B e-commerce business in the food supply chain, which recently secured US$50 million in Series G funding at a US$3.5 billion pre-money valuation. This highlights the significant investor interest in technology-driven solutions for optimising the food supply chain, a trend that Southeast Asian startups could capitalise on.

Other notable global deals in the F&B tech space include:

SKUsafe (USA): A product lifecycle management tool for high-growth CPG brands, raised US$4.3 million in seed funding in January 2025.

Mealawe (India): An online platform connecting home kitchens for homemade meals, raised US$1 million in seed funding in February 2025. This example from India may be particularly relevant for similar models emerging in Southeast Asia.

Choice (Czech Republic): A B2B SaaS platform for restaurants offering online ordering, marketplace management, reservations, and guest engagement, raised US$1.08 million via a convertible note in March 2025.

GerOrder (Ukraine): Restaurant software integrating food delivery platforms with POS, received a US$22,000 grant in March 2025.

Regulate (USA): An AI-driven SaaS company for market prediction and regulatory compliance, raised US$250,000 in a venture round in March 2025.

Also Read: How digital technology can transform the food and beverage industry

Velocity Ventures’s analysis suggests that the current landscape in Southeast Asia presents a compelling opportunity for startups that can introduce innovative automation and supply chain solutions to address the pressing issues of food security and labour shortages. The sustained growth in grocery e-commerce further indicates a receptive market for digital solutions within the region’s F&B sector.

The post Automation, not apps: The next frontier in Southeast Asia’s F&B tech innovation appeared first on e27.

Posted on

Tariffs, tech crashes, crypto dips, and gold’s record run: Why markets are in chaos today

This week, the interplay of US-Japan trade talks, US-China tariff escalations, and new restrictions on chip exports has kept markets on edge. Meanwhile, Federal Reserve Chair Jerome Powell’s measured response to the turmoil has dashed hopes for immediate intervention, leaving investors to grapple with volatile asset prices and shifting risk sentiment.

The current market landscape is a complex tapestry of competing forces, from Bitcoin’s resilience to Ethereum’s technical signals, US equities’ performance, and gold’s safe-haven allure. Below, I offer my perspective on these developments, weaving together the broader macroeconomic context, asset-specific dynamics, and the implications for investors navigating this fraught environment.

The tentative global risk sentiment reflects the high stakes of ongoing tariff negotiations, particularly between the US and its major trading partners. The advancement of US-Japan trade talks, marked by President Trump’s optimistic claim of “big progress,” provided a modest lift to Japanese equities, with the Nikkei 225 gaining slightly. However, the yen weakened as investors priced in the likelihood of a deal that could avert higher US levies on Japanese goods, particularly in the auto sector. This development underscores Japan’s delicate balancing act: while a trade agreement could stabilise its export-driven economy, a stronger US dollar against the yen could pressure Japanese manufacturers’ competitiveness. The Bank of Japan, already grappling with a low-yield environment, may face further constraints if US tariffs dampen economic growth, as Governor Kazuo Ueda recently hinted.

For investors, the yen’s trajectory and Japan’s market performance hinge on the specifics of any deal—whether it prioritises market access or imposes new non-tariff barriers.

The US-China trade war, however, remains the epicentre of market anxiety. The White House’s confirmation of a staggering 245 per cent cumulative tariff rate on Chinese imports, following China’s retaliatory 125 per cent levies on US goods, signals a deepening economic standoff. This tit-for-tat escalation, coupled with new US restrictions on chip exports by Nvidia and AMD, has battered technology stocks and fueled fears of disrupted global supply chains. The chip export curbs, targeting Nvidia’s H20 and AMD’s MI308 AI chips, are a strategic move to limit China’s access to advanced technology, but they come at a cost: Nvidia estimates a US$5.5 billion hit to its revenue, and its shares slumped nearly seven per cent.

Also Read: Automation, not Apps: The next frontier in Southeast Asia’s F&B tech innovation

The broader tech-heavy Nasdaq Composite fell 3.1 per cent, contributing to the MSCI US index’s 2.2 per cent decline. These developments highlight the fragility of the tech sector, which has been a cornerstone of US market performance but is now vulnerable to geopolitical shocks.

China’s response has been multifaceted, blending defiance with pragmatism. Beijing’s vow to “fight to the end” against US tariffs is tempered by signals of openness to negotiations, suggesting a desire to avoid a complete collapse of trade relations. However, China’s reported sale of confiscated cryptocurrency holdings, including Bitcoin, amid an economic slowdown, adds another layer of complexity.

This move, likely driven by the need to bolster fiscal reserves, has sparked speculation about its impact on crypto markets. Remarkably, Bitcoin has shown resilience, holding above US$84,000 despite the sales. This strength can be attributed to Bitcoin’s growing perception as a hedge against macroeconomic uncertainty, particularly as central banks and investors seek alternatives to traditional assets amid trade war volatility. Posts on X reflect this sentiment, with some users noting Bitcoin’s 64 per cent market dominance—a level not seen since early 2021—as evidence of its safe-haven appeal.

Ethereum, by contrast, has struggled, slipping below US$1,600 and entering a technically bearish phase. An analysis by CryptoQuant’s abramchart offers a nuanced perspective, suggesting that Ethereum’s current price near its realised price of US$1,585 could signal a deep-value accumulation zone. Historically, such levels have preceded major bull runs as long-term holders re-enter the market. However, technical indicators paint a mixed picture: Ethereum’s breach of its 20-day moving average and its position well below the 200-day average confirm a strong downtrend, while the relative strength index near 40 indicates weak momentum.

The compressed Bollinger Bands suggest a potential breakout, but the direction remains uncertain. For investors, Ethereum’s current dynamics present both opportunity and risk. While the realised price level hints at undervaluation, the broader market’s risk-off mood and trade war headwinds could delay a rebound.

The Federal Reserve’s role in this turbulent environment cannot be overstated. Chair Jerome Powell’s remarks this week, emphasising a wait-and-see approach to tariffs, have quashed expectations of a “Fed put”—a swift policy response to stabilise markets. Powell’s caution is rooted in the dual risks of higher inflation and slower growth, which tariffs are “highly likely” to exacerbate. His acknowledgement that the Fed faces a “highly uncertain outlook” underscores the central bank’s dilemma: cutting rates could fuel inflation while holding or raising rates risks stifling growth and employment. The Fed’s benchmark rate, currently between 4.25 per cent and 4.5 per cent, reflects this holding pattern, with traders still betting on cuts by June despite Powell’s reticence. The Fed’s data-dependent stance, coupled with solid economic indicators like March’s 228,000 job additions, suggests that any policy shift will hinge on clearer evidence of tariff-related economic fallout.

Also Read: Trade War tensions escalate: How China’s jet ban and Bitcoin slips as supply outpaces demand

Fixed-income markets have also felt the strain, with US Treasury yields edging lower as investors reassess growth prospects. The 10-year yield fell 5.6 basis points to 4.28 per cent, and the two-year yield dropped 7.5 basis points to 3.77 per cent, reflecting concerns about a potential recession. The US dollar index’s 0.8 per cent decline, reaching its lowest level since April 2022, signals waning confidence in US assets as investors pivot to safe-haven currencies such as the Japanese yen and Swiss franc. Gold, meanwhile, has surged 3.5 per cent to a record US$3,339 per ounce, with ANZ Bank forecasting a rise to US$3,600 by year-end.

This rally, driven by central bank purchases and haven demand, underscores gold’s role as a bulwark against geopolitical and economic uncertainty. Brent crude’s 1.8 per cent rise to around US$65 per barrel, spurred by US sanctions on Chinese importers of Iranian oil, highlights the ripple effects of trade policies on commodity markets.

US equities, particularly the energy sector, have shown pockets of resilience, with energy stocks gaining 0.8 per cent amid higher oil prices. However, the broader MSCI US index’s 2.2 per cent tumble reflects the tech sector’s drag and broader tariff fears. Asian equities, trading in a tight range, have been buoyed by hopes of Chinese stimulus, but volatility persists as negotiation headlines dominate. US equity futures, pointing to a 0.4 per cent higher open, suggest a tentative recovery, but the market’s direction remains contingent on trade developments.

From my perspective, the current market environment demands a disciplined, long-term approach. The escalation of US-China tariffs and chip export restrictions poses significant risks to global growth, particularly for the tech and manufacturing sectors. However, opportunities exist in assets such as Bitcoin and gold, which are benefiting from their safe-haven status. Ethereum’s technical setup, while bearish, suggests potential for accumulation by patient investors.

Powell’s cautious stance, while frustrating for those seeking immediate relief, is a prudent response to an unprecedented policy shock. Investors should focus on diversification, prioritising assets with strong fundamentals and resilience to geopolitical volatility. The road ahead is fraught with uncertainty, but those who navigate it with clarity and conviction may find opportunities amid the storm.

In conclusion, the global markets are at a crossroads, shaped by the interplay of trade tensions, monetary policy, and shifting investor sentiment. The US-China tariff war, US-Japan trade talks, and the Fed’s watchful stance are driving volatility across equities, currencies, and commodities. Bitcoin’s resilience, Ethereum’s accumulation potential, and gold’s surge highlight the divergent paths assets are taking in this environment. As negotiations unfold and economic data clarifies the tariff impact, investors must remain agile, balancing risk and opportunity in a rapidly evolving landscape.

Enjoyed this read? Don’t miss out on the next insight. Join our WhatsApp channel for real-time drops.

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

Image Credit: ahmad gunnaivi on Unsplash

The post Tariffs, tech crashes, crypto dips, and gold’s record run: Why markets are in chaos today appeared first on e27.

Posted on

Eratani raises US$6.2M to scale sustainable rice farming solutions

Indonesian agritech startup Eratani announced it has secured US$6.2 million in Series A funding to accelerate its mission of transforming Indonesia’s rice farming sector through sustainable and data-driven solutions.

Clay Capital led the funding round, which included participation from TNB Aura, SBI Ven Capital, AgFunder, Genting Ventures, and IIX.

The fresh capital will enable Eratani to expand the adoption of precision agriculture tools, on-farm mechanisation, and environmentally sustainable cultivation practices. These efforts aim to improve farmers’ productivity and profitability while supporting Indonesia’s broader climate and food security goals.

“At Eratani, we are proving that economic and social impact can go hand-in-hand with environmental sustainability,” said Andrew Soeherman, Co-founder and CEO of Eratani, in a press statement. “Our focus is not on rapid expansion but on building a robust foundation that allows us to scale strategically, creating long-term value for farmers and the agricultural ecosystem.”

Founded in 2021, Eratani has built an end-to-end digital platform that connects stakeholders across the rice supply chain. The platform provides smallholder farmers access to affordable credit, quality inputs, agronomic advisory services and improved market access.

Also Read: Singapore anchors inaugural ClimAccelerator for agritech startups in APAC

The startup said that it has empowered over 34,000 farmers across Java and Sulawesi, improved cultivation across more than 13,000 hectares, and increased yields and incomes by 29 per cent and 25 per cent respectively in 2024. In total, Eratani has supported the production of over 112,000 tons of rice and grain.

Rice, a staple food for more than half the world’s population, is among the most environmentally intensive crops. Flooded rice fields contribute 1.5–2 per cent of global greenhouse gas emissions—comparable to those from the aviation industry—and use 3,000 to 5,000 litres of water per kilogram, significantly more than other major cereals.

Eratani’s integrated approach aims to tackle these environmental challenges while enhancing food production efficiency. Eratani, Co-Founder and CFO Bambang Cahyo Susilo, explained that by utilising data-driven insights, the company is able to manage risk more effectively and support smarter decisions for farmers.

Startup moves happen fast. Get ecosystem updates first via e27’s WhatsApp channel.

Image Credit: Eratani

The post Eratani raises US$6.2M to scale sustainable rice farming solutions appeared first on e27.

Posted on

Indonesia’s startup ecosystem faces funding crunch in 2024, but CVCs emerge as a viable lifeline

Indonesia’s once-vibrant startup ecosystem endured a sharp contraction in 2024, with funding activity slowing to its lowest level in recent years. According to the Indonesia Tech Annual Report 2024 by Tracxn, the country’s total startup funding plummeted to US$323 million—a 75 per cent drop from the US$1.3 billion raised in 2023 and an even more pronounced 90.05 per cent fall from US$3.24 billion in 2022.

This dramatic downturn reflects broader global caution in venture capital (VC) spending, but also highlights local challenges unique to Southeast Asia’s largest economy. The most acute impact was felt at the late-stage level, where startups collectively raised just US$71.2 million. This figure marks a steep 91.95 per cent decrease from US$884 million in 2023 and a 95.84 per cent collapse from 2022’s US$1.71 billion.

Across the board, the Indonesian tech startup scene has encountered tightened capital flow. Early-stage and seed-stage startups have not been spared, signalling a systemic slowdown in the investment cycle. However, some pockets of resilience remain. According to the report, sectors such as fintech, enterprise applications, and insurtech have continued to attract investor attention, suggesting a selective appetite for scalable and financially sound business models.

Beyond private equity funding, exit activity also witnessed a decline. Only one startup, Topindoku, made its public debut in 2024, raising US$34.9 million. This singular IPO illustrates the cautious sentiment prevailing in capital markets, where companies are holding off on public listings amidst valuation corrections and investor scepticism.

As traditional venture funding continues to retract, startups are increasingly exploring alternative avenues for growth capital. One such option gaining traction is corporate venture capital (CVC), often backed by major corporates and financial institutions.

Also Read: AI trade compliance startup Dutycast lands strategic funding from GTR Ventures

The CVC advantage

In contrast to conventional VCs, CVCs not only provide financial backing but also offer strategic advantages, including access to customers, go-to-market support, and brand credibility.

A Harvard Business Review article underscores the potential of CVCs in volatile markets. It notes, “These corporate investors offer not only funding, but also access to resources such as subsidiaries that can serve as market validators and customers, marketing and development support, and a credible existing brand.”

In Indonesia, where startups are grappling with funding scarcity and the need to demonstrate value early, such support can be vital.

Banks, too, are stepping up as non-traditional partners, especially those seeking to expand their digital portfolios or strengthen relationships with innovative enterprises. With extensive regulatory experience and existing customer networks, banks can offer a solid foundation for collaboration, particularly in fintech and adjacent sectors.

Despite current headwinds, Indonesia’s tech ecosystem retains underlying strengths. With a young, tech-savvy population, growing internet penetration, and increasing digitisation across industries, the long-term fundamentals remain intact. Yet the current funding winter is a reminder that capital efficiency, strong unit economics, and clear product-market fit are more essential than ever.

Looking ahead, the trajectory of Indonesia’s startup ecosystem will depend on how founders, investors, and strategic partners adapt to this new normal. The rise of CVCs and institutional collaborators may redefine what it means to grow a tech startup in Indonesia—shifting the narrative from high-velocity growth to long-term resilience and strategic value creation.

To understand more about this shift, do not miss the fireside chat “Investing in Innovation: The Role of Banks and CVCs in the Future of Indonesia’s Tech Ecosystem” at Echelon Singapore 2025, taking place on Tuesday, June 10, from 11:00 AM to 11:30 AM at the Forge Stage.

This session offers a timely deep dive into how banks and corporate venture capital arms are stepping in to support innovation amid Indonesia’s shifting funding landscape. Moderated by Shilpa S Nath, Founder of What The Fail, and featuring Eddi Danusaputro, CEO of BNI Ventures, the conversation will explore new strategies for sustainable growth, the evolving role of institutional investors, and what it takes to build resilience in uncertain times.

Entry is free—make sure to attend and gain key insights into the future of tech investment in Southeast Asia.

Get your passes here.

The post Indonesia’s startup ecosystem faces funding crunch in 2024, but CVCs emerge as a viable lifeline appeared first on e27.

Posted on

East meets Southeast: How Japan can empower a new wave of SEA startup innovation

As Southeast Asia’s (SEA) startup ecosystem continues to mature, Japan is emerging as a valuable and strategic partner in the region’s innovation economy. With its capital resources, corporate maturity, and increasing appetite for international collaboration, Japan’s engagement with Southeast Asian startups is gaining traction—offering opportunities for funding, technology transfer, and market access.

Japanese investors have historically maintained a cautious approach to risk, but recent years have seen a shift towards more active participation in global startup markets, particularly in Asia. A report by Startup Genome highlights Japan as one of the top five Asian countries investing in startups beyond its borders, with SEA standing out as a priority region due to its demographic advantages, digital growth, and dynamic consumer markets.

Japan’s presence in the region is driven in part by the country’s need to counterbalance its domestic challenges—namely an ageing population, a shrinking workforce, and stagnating internal demand. In contrast, SEA offers youthful populations, increasing mobile penetration, and high rates of digital adoption. For Japanese firms, partnering with SEA startups presents an opportunity to access fast-growing markets while contributing capital and experience.

NTT, one of Japan’s largest telecommunications companies, exemplifies this approach. Through its venture arm and corporate innovation initiatives, NTT has actively sought collaborations across the region, not only by investing in startups but also by co-developing solutions in areas such as smart cities, fintech, and AI.

Beyond individual corporations, institutional initiatives also support deeper ties between Japan and SEA. The Japan External Trade Organization (JETRO) has been instrumental in promoting cross-border partnerships through programmes such as the Japan Innovation Bridge (J-Bridge), which facilitates open innovation between Japanese companies and overseas startups. According to JETRO’s 2023 report, SEA accounted for more than 30 per cent of all startup collaboration projects involving Japanese corporates—a clear indication of growing interest in the region.

Also Read: Granite Asia, Integral form US$100M JV to drive Japan-global tech expansion

Japanese venture capital firms are also expanding their presence in SEA. Funds such as GREE Ventures (now STRIVE), Spiral Ventures, and Genesia Ventures have established local offices or dedicated funds targeting startups in Indonesia, Vietnam, Singapore, and beyond. These VCs are not just investing capital but also bringing a long-term, partnership-oriented mindset, which aligns well with founders seeking sustainable scaling strategies.

Despite the growing momentum, cultural and operational differences remain key challenges. Japanese investors often take a longer time to make decisions and place a strong emphasis on due diligence and relationship-building. For SEA founders, understanding and navigating these expectations is critical to building lasting partnerships. Conversely, Japanese corporates must be prepared to adapt to the faster pace and flexible structures typical of startups in emerging markets.

There are also sectoral synergies that make collaboration attractive. Areas such as fintech, agritech, mobility, and deep tech offer significant room for cooperation. Japan’s strength in hardware and engineering complements SEA’s digital-native startups, many of which excel in mobile-first platforms and service delivery. Together, they can co-create solutions tailored for both developed and developing markets.

Looking forward, the deepening ties between Japan and SEA’s startup ecosystems are likely to accelerate. Regional governments are increasingly supportive of international cooperation, and bilateral frameworks are being designed to encourage tech partnerships. As cross-border travel and business engagement return to pre-pandemic levels, there is optimism that these connections will translate into a more robust and integrated Asian innovation landscape.

Also Read: Vertex Ventures Japan launches with US$67M fund to propel Japanese startups globally

To learn more about opportunities for SEA startups in Japan, join us at the Future Stage on Tuesday, June 10, from 11:05 AM to 11:30 AM for the keynote speech “Beyond Borders: How Southeast Asia’s Startup Ecosystem Can Win with Japan.”

This free session will feature Ken Katsuyama, SVP and Head of Global Business at NTT, who will share expert insights on how SEA startups can tap into opportunities for collaboration, investment, and expansion with Japan’s tech and corporate ecosystem.

As regional markets become increasingly interconnected, this keynote offers valuable perspectives on building cross-border partnerships and driving innovation across Asia. Don’t miss this chance to explore new frontiers in regional tech growth.

Get your passes here.

The post East meets Southeast: How Japan can empower a new wave of SEA startup innovation appeared first on e27.

Posted on

85% of AI projects fail: Here’s how to make yours succeed

When it comes to adopting AI, not every business needs to reinvent the wheel or start from zero. Instead, leaders should take a step back and ask: Where does my organisation stand today?

The reality is businesses exist across a spectrum of AI readiness. Some are just starting to explore the concept of AI, while others are already using it to drive innovation and strategy. The key to success is to evaluate your current stage and take targeted actions to move forward.

Understanding your current level of AI maturity is the first and most important step. This approach saves time, money, and effort by aligning your AI strategy with your actual capabilities and business needs.

The five phases of AI readiness

Let’s break down the Enterprise AI Readiness Framework into simple terms and real-world scenarios. Each phase comes with specific goals and examples to guide your journey.

  • Awareness: “What is AI, and why should we care?”

This is the starting point for many businesses. At this stage, the goal is to build awareness of AI and how it could apply to your industry. Educate leadership through workshops and seminars. Research potential AI use cases for your organisation. Identify areas where AI could solve real business problems. Studies show that 60 per cent of organisations are still in this early phase, with no formal AI initiatives in place.

Example: A manufacturing company exploring AI might learn that predictive maintenance can reduce downtime by 20-30 per cent, saving millions annually. But they first need to understand the basics of how AI works.

  • Exploration: “Let’s test the waters with small projects”

Here, businesses start experimenting with small-scale AI projects. These are low-risk, low-cost pilots that demonstrate the potential of AI. Form a small AI team (e.g., one data scientist, one engineer). Test off-the-shelf AI tools and analyse pilot results. Gartner reports that 25 per cent of companies in this phase see measurable returns within six months of starting AI pilots.

Example: A retail company might pilot an AI tool to predict inventory needs. By analysing past sales data, they avoid overstocking, saving US$100,000 in a single quarter.

Also Read: Climate tech startups can play a role in helping SMEs bridge sustainability, digital transformation: Paessler

  • Operationalisation: “Let’s formalise AI across the organisation”

At this stage, businesses move from pilots to building infrastructure for scalable AI adoption. This includes setting up governance, ensuring data privacy, and deploying AI in real-world use cases. Establish an AI Center of Excellence (CoE), build scalable data platforms (e.g., data lakes), and create governance policies for compliance. According to McKinsey, businesses in this phase see a 20 per cent improvement in operational efficiency.

Example: A healthcare provider adopts AI to analyse patient data, reducing diagnosis times by 30 per cent. They build a centralised platform to ensure all AI models meet regulatory requirements.

  • Proficient: “AI is part of how we work”

Now, AI becomes integrated into daily operations across the organisation. Advanced monitoring systems ensure models stay accurate, and employees are trained to use AI tools effectively. Scale AI solutions across departments. Train employees to use AI in their roles. Monitor models for performance and fairness. Proficient organisations report a 30-50 per cent increase in productivity across functions using AI.

Example: An e-commerce company uses AI to personalise customer experiences, increasing average order value by 15 per cent. AI tools also optimise warehouse operations, cutting costs by 10 per cent.

  • Leader: “AI drives everything we do.”

This is the ultimate level of AI maturity. Businesses here use AI as a core driver of strategy, innovation, and operations. Use cutting-edge AI techniques like generative AI and autonomous systems. Foster an AI-first culture with continuous employee upskilling. Only 10 per cent of organisations globally are at this stage, but they account for 70 per cent of all economic gains from AI.

Example: Tesla uses AI not only in its cars but also to optimise factory production, cutting manufacturing costs by 25 per cent. AI also drives innovation in R&D, creating entirely new product categories.

Why starting with assessment matters

Imagine this: You wouldn’t buy a Formula 1 car if you’ve only just learned how to drive. Similarly, jumping straight into advanced AI tools without the right foundation can lead to wasted investments. A survey by MIT found that 85 per cent of AI projects fail—not because AI doesn’t work, but because organisations weren’t ready for it.

Also Read: COVID-19, the environment, and the tech ecosystem: what opportunity is available out there for us?

By assessing your current maturity level, you can focus on actions that deliver real value. For example:

  • Awareness phase: Focus on leadership buy-in and identifying high-impact use cases
  • Exploration phase: Invest in small, measurable pilots to prove AI’s value
  • Proficient phase: Scale AI efforts strategically, focusing on ROI

Practical takeaways for leaders

  • Start small: If you’re in the early stages, start with one pilot project. For instance, try using AI to automate customer service through chatbots
  • Measure results: Document your wins and challenges. Did your pilot reduce costs or improve efficiency? Use these insights to build momentum
  • Think long-term: Advanced AI maturity doesn’t happen overnight. Focus on sustainable growth by investing in talent, infrastructure, and governance

The roadmap to AI success

So, where does your organisation stand today? Assess your readiness, align your strategy, and take the next step toward unlocking AI’s transformative potential. Remember, AI isn’t a destination—it’s a journey. And every journey starts with knowing where you are.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image courtesy: Canva Pro

The post 85% of AI projects fail: Here’s how to make yours succeed appeared first on e27.

Posted on

How Agentic AI will create telecom’s first truly autonomous workforce by 2030

For UK’s telecom and IT sectors, Agentic AI could be the new rainmaker. With its capabilities to understand, adapt, predict, and act independently, businesses can now unlock capabilities previously thought impossible. Imagine fully autonomous customer interactions, predictive operations, and dynamic system management – the possibilities are unlimited. 

According to Gartner, Agentic AI sits at the top, offering businesses a virtual workforce capable of offloading complex tasks. Pair this with AI governance platforms that enforce accountability, spatial computing for immersive decision-making, and energy-efficient computing to tackle sustainability goals, and we have a tech ecosystem built to redefine industries. 

Yet, UK’s telecom and IT sectors, while leading in AI adoption, are ill-prepared to take this leap into the future.

Leading in adoption but failing in impact?

For a decade, IT and telecom have been tinkering at the edges with digital transformation while the core problems remain untouched. Yes, they have adopted AI, and yes, they lead in implementation statistics, but barely 10 per cent of companies are taking these experiments beyond pilots, and at least 30 per cent are expected to abandon their pilots by the end of the year.

Every incremental innovation in AI is met with the same infrastructure bottlenecks, the same struggles with data readiness, and the same patchwork of tools and systems. Even as 87 per cent of operators integrate AI into their network operations, they remain hamstrung by the lack of high-quality data..

Let’s start with the problem. Each use case is tackled as a standalone project, requiring bespoke integrations, significant change management, and endless cycles of reengineering. This approach wasn’t scalable a decade ago, and it certainly isn’t now when the landscape is shifting at lightning speed. The Achilles’ heel of many enterprises is their existing infrastructure which is ill-equipped to meet the demands of an autonomous future. Most companies simply are not ready for this reality. 

The UK Government is creating AI zones hoping to create £45 billion (US$58.257 billion) in annual savings, but without addressing foundational gaps, this vision is at risk of falling flat. What is the ticket out of this decade-long stagnation?

Also Read: Navigating the AI shift in telecommunications: From promise to practical connection

A platform mindset is non-negotiable

For enterprises, becoming AI-first will be a sustained differentiator and a force multiplier. And that’s not going to happen if companies chase the next big use case or the latest tech or model in town. The only way to keep up with advancements is to adopt a unified platform that can accommodate any use case.

A platform-centric approach offers a composable, modular architecture that enables businesses to plug and play new AI technologies without disruption. It ensures scalability, flexibility, and speed. In a Forrester Consulting report commissioned by EdgeVerve, 70 per cent of companies said they believed a platform approach could help them achieve their top digital transformation goals.

It’s important to be clear: a platform is not just a tool. It’s a strategy. It’s what allows telecom providers to predict operational disruptions by deploying digital twins of their networks. It’s what enables IT leaders to cut time-to-market with intuitive AI interfaces that make even complex systems accessible to non-technical teams. It’s what transforms call centres into revenue drivers by embedding AI-powered hyper-personalisation into every customer interaction.

And a unified platform addresses the biggest obstruction to AI adoption: data readiness. By centralising and standardising data pipelines, it creates a single and complete source of truth. It also ensures that businesses can easily integrate new models and technologies without rebuilding their infrastructure from scratch.

How a platform approach enables applied AI at scale 

A platform approach sets the perfect stage for scaling AI while ensuring past investments don’t go to waste by building on what already exists and amplifying its impact.

Consider the customer service operations of one of the world’s largest telecom companies. Thousands of agents spread across geographies had to work with inconsistent processes, poor visibility into workflows, and a lack of actionable insights. This led to dissatisfied customers and underperforming teams.

Also Read: Telecommuting: what it is and how to make it work

But they found a way forward. Deploying a unified platform for process intelligence, they unlocked task-level insights, standardised operations, and improved agent productivity by 20 per cent, all without disrupting daily work.

Similarly, a global telecom giant was drowning in inefficiency, managing over 750,000 tower lease contracts riddled with complexities—non-standardised formats, hidden risks, and manual data extraction that delayed decision-making and introduced costly errors.

Leveraging a platform approach they automated contract reviews, extracting terms and clauses with precision while surfacing insights into risks and opportunities. The result was a US$21 million in savings, a 60 per cent productivity boost, and better negotiations powered by instant access to accurate, actionable contract data.

From use cases to infinite possibilities

The UK’s AI market is set to hit US$26.89 billion by 2030, with agentic AI leading the charge. Companies that are unable to apply AI at scale risk falling further behind, unable to keep pace with the demands of autonomous AI.

The path forward isn’t just about technology—it’s about creating a scalable foundation for innovation. Businesses that succeed will be those that integrate agility into their core, enabling them to adapt as AI technologies evolve. It’s no longer about chasing the next breakthrough but about being ready for whatever comes next.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

Image courtesy: Canva Pro

The post How Agentic AI will create telecom’s first truly autonomous workforce by 2030 appeared first on e27.

Posted on

The future of work and Malaysia’s role as a Southeast Asian hub in 2025

As we step into 2025, we will continue to see change in the way we work around the world, which is driven by global shifts in workplace culture, technological advancements, and new employee expectations. Hybrid work, digital transformation, and flexible workspaces are reshaping how businesses operate and how employees engage with their work.

These trends present new opportunities for countries like Malaysia, which is emerging as a key player in Southeast Asia’s business ecosystem. In this context, co-working spaces have become central to Malaysia’s strategy, providing flexible solutions that meet the needs of today’s workforce.

The evolution of work trends for 2025

Hybrid work has become commonplace, and we witnessed firsthand how it has transitioned to a permanent and long-term policy in some workplaces. Businesses are not only acknowledging that providing both hybrid and flexible work options is crucial for attracting and retaining talent, but they are also actively implementing new strategies to enhance this arrangement for their employees.

As hybrid work becomes entrenched, technology continues to play a pivotal role in shaping how businesses function. Innovations such as artificial intelligence (AI) and workplace automation are transforming co-working spaces, making them smarter and more efficient. This has created more job opportunities, specifically remote and flexible work.

For example, at WORQ, we leverage OfficeRND, a co-working space management platform that helps streamline shared workspace operations. We use this software, in particular, to enhance member experiences through AI, the Internet of Things (IoT), and workplace automation — offering features like automated room bookings, streamlined billing, and data-driven member insights.

In addition to that, we also provide solutions like All Access Pass and Flex Desk memberships for employees and our teams with rotational work schedules, optimising workspace subscriptions for companies.

A key trend set to shape the co-working industry in the coming years is the rise of wellness-focused space designs. This design focuses on biophilic elements, ergonomic layouts, and natural lighting to improve mental and physical well-being. Notably, our partnerships reflect this — from Sealy’s napping pods that promote rest to Snowfit’s massage chairs that provide moments of relaxation. Balak’s height-adjustable desks support healthy posture, while TTRacing’s ergonomic chairs deliver both comfort and style.

Hybrid-ready spaces will become the standard, blending the comfort of home with the productivity of an office. Flexible workspaces will cater to collaboration while also providing zones for focus and relaxation, addressing the diverse needs of teams in a hybrid environment.

Also Read: Creating an AI playbook that works in Southeast Asia

Another key trend we will be seeing that keeps growing stronger in 2025 is a renewed focus on environmental, social, and governance (ESG), particularly as businesses place more emphasis on diversity, equity and inclusion (DEI). There will likely be a stronger push to support underrepresented groups, such as people with disabilities and working mothers, in both workplace design and policy.

We expect flexible work to become a key focus for Southeast Asian governments as they explore various measures to increase birth rates and help families manage childcare concerns. In Malaysia, this is a step in the right direction — with initiatives announced in the Budget 2025 — several key initiatives that champion flexible work, persons with disabilities (PWDs), and helping women return to the workforce.

Malaysia, a strategic economic hub in the region

Malaysia has long been a key player in Southeast Asia’s economic landscape, with its strategic location, robust infrastructure, and skilled workforce making it a prime destination for global businesses. In recent years, the country has undergone a series of reforms to boost competitiveness, improve productivity, foster innovation, and advance digital transformation.

One example is the Malaysia Digital Economy Corporation (MDEC) Digital Hub Programme, designed to accelerate the nation’s digital economy by supporting tech startups, fostering innovation, and creating a collaborative ecosystem. The programme also focuses on developing digital talent through upskilling initiatives and offers support for businesses undergoing digital transformation, with opportunities in areas like AI, e-commerce, and blockchain.

These efforts are not only enhancing Malaysia’s appeal as a regional business hub but they are also offering a stable environment that supports growth and adaptability. The two main components needed to position Malaysia as an attractive hub for foreign investors in the region.

WORQ has been actively supporting these initiatives from the get-go by working closely with the DE Rantau team, an initiative spearheaded by MDEC. We have been hosting community events and networking sessions at our outlets, creating opportunities for business leaders and entrepreneurs to connect, share ideas, and collaborate.

How co-working spaces evolve and lead the way

Co-working spaces have significantly prompted businesses to rethink and reevaluate how they operate, while also revolutionising the office real estate market. As businesses embrace flexible work arrangements, short-term office solutions have surged.

One thing co-working spaces provide is the ability to scale up or down without being tied to long-term leases, providing the agility needed in today’s fast-paced environment. In addition to that, these spaces foster and encourage collaboration and innovation by bringing together a diverse community of entrepreneurs, freelancers, and SMEs from all over the world in one hub.

Also Read: Can co-working spaces change Malaysia’s work habits?

At WORQ, repurposing unused office spaces into dynamic co-working environments is a key strategy in reshaping the traditional office market. By optimising existing real estate, we provide businesses with the flexibility they need to grow while fostering a thriving ecosystem for startups and small enterprises. This approach not only supports business innovation but also strengthens the local economy.

Building a resilient workforce for the future

Malaysia stands at the forefront of the evolving future of work in Southeast Asia. With its strategic location, forward-thinking policies, and growing co-working ecosystem, the country is well-positioned to lead the region into 2025 and beyond. By embracing flexible workspaces and hybrid work models, Malaysia is not only enhancing its business environment but also attracting global talent and fostering innovation.

Flexibility is key to resilience. Businesses that adapt and embrace continuous improvement stay competitive, as reflected in our value of adapt, improve, repeat. Prioritising people by fostering trust, inclusivity, and collaboration strengthens both employees and communities.

As we move towards the future, businesses, policymakers, and workers must work together to embrace the opportunities presented by flexible work and co-working spaces. Through collaboration and a commitment to innovation, Malaysia can continue to build a resilient and sustainable workforce for the future.

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join us on InstagramFacebookX, and LinkedIn to stay connected.

We’re building the most useful WA community for founders and enablers. Join here and be part of it.

Image courtesy: Canva Pro

The post The future of work and Malaysia’s role as a Southeast Asian hub in 2025 appeared first on e27.