In a recent report, the Association of Chartered Accountants (ACCA), the International Federation of Accountants (IFAC), and professional services firm PwC revealed that 19 per cent of businesses in Singapore have no emissions plan in place despite the climate emergency.

In addition, 70 per cent of those without an emissions plan do not intend to develop one. This trend can be attributed to a lack of awareness or understanding of the importance of such plans or the perception that businesses are not directly responsible for the sustainability agenda.

“The recent COP28 emphasised the need for a swift, just, and equitable transition away from fossil fuels, with an overarching aim to keep global temperature rise within 1.5°C. This agreement and the global stocktake, which calls for significant emission cuts and scaled-up finance, are expected to influence national climate action plans due in 2025,” an ACCA spokesperson wrote in an email to e27.

“These developments could provide a framework and impetus for businesses in Singapore, including those without current emission plans, to develop stronger climate action strategies aligned with global standards and expectations.”

There are several steps that the organisation recommended to encourage businesses to develop their emission plan, starting with involving CFOs and finance teams in emissions reduction planning, as they can integrate climate priorities into business planning and resource allocation. But these finance teams should also be equipped with the skills and expertise to support net-zero initiatives.

Also Read: What is left behind in our conversation on climate change

In addition to that, there have to be clear targets and timelines from the government for the phase-out of unabated fossil fuels and supporting the clean energy transition, completed with ensuring clear pricing signals through a meaningful price on carbon and reforming fossil fuel subsidies to support a clean energy transition.

“Public and private financial flows aligning with the objective of phasing out fossil fuels. Incentives could work if they are aligned with these broader strategies and if they address the specific barriers that businesses face in developing and implementing emissions plans.”

The startup approach

In an interview with e27 in June, Susli Lie, Partner at Monk’s Hill Ventures, spoke about the increasing popularity of startup investors considering elements of ESG (Environmental, Social, and Governance) in deciding a potential investment.

“Traditionally, people care a lot about managing and mitigating risks. So, what damage are you doing to the environment? How much greenhouse gas emissions waste are you producing? What are you doing with that, and how do you treat your people? Those things are all very important, and we track those as well. But we also understand that when we work with companies, there are sometimes ESG-related opportunities that could also lead to commercial success,” Lie said.

Also Read: Evercomm wants to pave the way for corporate decarbonisation success

This seems to align with the idea of encouraging businesses in Singapore to have an emission plan. So what can be done to encourage startups to implement the ESG approach in their business, particularly by including an emission plan?

The ACCA have several recommendations:

– Providing access to knowledge and resources about sustainable practices and their benefits
– Offering incentives such as tax breaks, grants, or subsidies for implementing sustainable technologies or practices
– Facilitating connections with sustainability experts and networks that can provide guidance and support.
– Creating a supportive policy environment that encourages sustainable practices and makes it easier for startups to adopt them
– Recognising and rewarding startups that successfully incorporate emission plans into their operations, which can serve as an inspiration for others

By having an emission plan ready and a generally positive attitude towards ESG, startups in the region might be able to go through the funding winter better and impact how they operate their business.

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Saving a startup from bankruptcy needs thorough analysis, intelligent decision-making, and effective implementation. In today’s competitive business environment, many companies suffer financial issues that could sink them.

However, with the appropriate strategy and execution, the startup may turn the corner and achieve financial stability and long-term success. This article will discuss ways to save a struggling startup from bankruptcy.

Startups must address financial issues and adopt successful strategies to survive and expand. Startups can improve their financial status and make better judgments by addressing financial challenges.

Cost-cutting, income diversification, and external finance can help firms overcome financial challenges and succeed in the long term. Startups risk bankruptcy without careful financial management.

Startups might fall into debt and be unable to pay their bills without proper action. Losing credibility and trust with investors, customers, and suppliers makes it harder to get capital or revenue. Financial volatility can also strain the founders’ and workers’ mental health, lowering productivity and morale. Failure to address financial difficulties might lead to startup failure and dissolution.

Assessing the situation

Assessing the problem is essential to identify the severity of financial issues and create a viable solution. This requires analysing the startup’s financials, cash flow, and debt. The firm can decrease costs, increase sales, or seek external investment by identifying the causes of financial instability, such as overspending or a lack of revenue.

Financial professionals or consultants should be involved in this assessment to ensure a complete and accurate financial assessment of the startup.

Conduct a thorough analysis of the startup’s financial health

This research should examine the startup’s cash flow, profitability, and debt. It’s crucial to establish whether financial troubles are caused by mismanagement, market conditions, or other factors. After identifying the main concerns, a plan is needed to address them. This may involve cost-cutting, funding, or strategic alliances or acquisitions.

Evaluate the current revenue streams and determine their sustainability

The startup’s customer base, price strategy, and market rivalry should be examined in this study. Assess whether current revenue streams are enough to support the company’s operations and expansion. Market research, client feedback, and diversification or expansion options may be needed. Knowing income stream sustainability helps the startup prepare for the future and make smart financial decisions.

Assess if there are areas for cost reduction or optimisation

Analysis of the startup’s primary expenses is essential for cost reduction and optimisation. The company’s overhead expenditures, such as rent, utilities, and personnel pay, may be examined to minimise waste or negotiate better supplier arrangements.

Startups can also use technology or automation to optimise operations and cut labour costs. The organisation can boost financial performance and better allocate resources to development and sustainability by identifying cost reduction or optimisation opportunities.

Also Read: The growth of business messaging: How it’s improving business performance in Southeast Asia

Developing a financial strategy

Startups need a financial strategy to succeed. Setting financial goals, developing a budget, and using a financial management system to track costs and revenue are required. The company should also diversify its funding to decrease its dependence on one investor or loan. A well-defined financial plan helps the firm make informed decisions and avoid financial risks, improving its chances of sustained growth.

Prioritise cash flow management and establish a realistic budget

Startups can ensure sufficient funding for expenses and investments by regularly monitoring cash flow and following a realistic budget. This will assist the company in meeting its financial goals without cash problems.

A realistic budget will also help the business deploy resources and identify cost-cutting opportunities. Paying attention to cash flow and setting a reasonable budget is crucial to financial stability and success.

Explore potential avenues for increasing revenue

The startup can boost its cash flow by researching revenue-generating opportunities. This could involve diversifying its products or services to appeal to more clients or targeting new markets or demographics. These techniques can boost sales and cash flow, boosting the company’s financial stability and long-term success.

Consider seeking external funding options

Startups seeking capital may consider loans or investments. This money can be used for expansion, hiring, or marketing and advertising. External funding can help the startup grow faster and succeed longer. The startup must carefully assess these funding options’ terms and conditions to ensure they match its goals and financial capabilities.

Cutting costs

Cutting costs is another way startups can manage their finances. Startups can free up resources for expansion by cutting overhead, superfluous subscriptions, and outsourcing jobs. Cost-cutting can also help firms become more efficient and sustainable, improving their financial health. Startups must routinely evaluate their expenses and discover ways to cut costs without sacrificing quality.

Identify non-essential expenses and develop a plan to reduce or eliminate them

Startups should first identify non-essential expenses like office supplies, fancy office premises, and staff benefits and create a plan to cut them. Cutting these unneeded charges can drastically lower initial costs and improve their financial situation. This may involve renegotiating supplier contracts, shrinking offices, or tightening expenditure policies. These strategies will save startups money and promote efficiency and prudent spending.

Negotiate with suppliers for better terms or discounts

This may involve reevaluating contracts and researching alternative suppliers for better pricing or terms. Negotiating with the startup’s purchasing power can cut expenses and save money over time. Startups may also benefit from strategic supplier alliances to improve procurement and receive exclusive prices. Startups can save money and improve their finances by negotiating with suppliers.

Consider outsourcing certain tasks or functions to save on overhead costs

Startups can cut costs by outsourcing jobs that don’t need hiring and training new staff or buying expensive equipment and infrastructure. Startups can focus on core business activities while benefiting from specialised service providers’ expertise and cost savings. Outsourcing also allows startups to scale and adapt to changing demand and business demands. This cost-cutting technique can help the firm develop financially.

Also Read: Team performance unlocked: Harnessing chronotypes for startup synergy

Improving efficiency

Eliminating procedures and streamlining processes can boost efficiency. Startup productivity task completion time, and resource savings can improve.

Investing in technology and automation can streamline operations and boost efficiency. Startups can automate repetitive activities, decrease errors, and boost productivity with technology.

Lastly, promoting efficiency and constant improvement in the company can boost long-term profitability. Encourage employees to suggest process improvements and execute regular performance assessments to boost startup efficiency.

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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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LiveIn, a provider of affordable long-stay rental property solutions in Southeast Asia, today announced that it has secured US$8.3 million in its pre-Series B funding round led by Wavemaker Partners and InterVest, with participation from Malaysia Debt Ventures Berhad (MDV), Jungle Ventures, and CAC Capital.

The funding round will be used to fuel the Malaysia-based LiveIn’s expansion into other key cities across the region. It is set to enter Vietnam and Indonesia by 2024.

Founded by Keek Wen Khai (Khai) and Joey Lim, LiveIn offers affordable yet quality long-term rental options through an online-to-offline platform.

In a press statement, the company said that it is on track to onboard 10,000 rooms onto its platform while maintaining high occupancy rates in its existing markets Malaysia and Thailand. Presently, the company is run by a team of 120 employees across Malaysia, Thailand, and Singapore.

Also Read: Set sail with intellectual property: Your business’s journey to success

LiveIn said that its unique approach to long-term property rentals has proven to be successful, boasting an impressive average occupancy rate of 90 per cent in Malaysia and Thailand. This model not only generates higher rental income for property owners but also offers tenants access to affordable, quality furnished housing. Simultaneously, it ensures scalability and profitability for LiveIn.

In terms of product update, LiveIn has streamlined its tenant onboarding process while enhancing its property management services such as fully furnished units, dedicated concierge services, and community events.

The company is keen on introducing new service features and forging strategic partnerships to reinforce its market position. As part of its strategy, LiveIn aims to expand into new urban areas to meet the evolving needs of young urban residents.

“Our team is energised by the recent injection of funds from our investors. It is a clear indication of their confidence in our ability to penetrate new markets aggressively and address the needs of our existing markets. We are witnessing a massive surge in demand for affordable long-stay rentals, with young people seeking more autonomy and quality living spaces. This new round of funding empowers us to direct more resources towards developing innovative service offerings that cater to the needs of our property owners and tenants, positioning them for success,” said LiveIn Co-founder and CEO, Khai.

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Singapore-based deep tech startup Atomionics recently announced that it has made the first-ever “virtual drill” for commercial resource discovery in Western Queensland, Australia. In a press statement, the company explains that virtual drilling allows the entire energy industry ecosystem to avoid unnecessary physical drills.

The commercial deployment of Gravio, the startup’s technology, is seen as a “new chapter in energy resources exploration, where efficiency, accuracy, and environmental responsibility are accessible realities.”

In a surveying expedition with Australian energy company Bridgeport Energy, Atomionics captured gravity data to identify potential resources underground. According to the company, gravity data is the fastest and least invasive way to identify the potential density of objects. For example, it helps to identify rocks that could contain oil deposits.

“Gravio is designed for forward-thinking companies in the resource sector who share our vision of a sustainable exploration future. Currently, we have three deployments underway with three of the world’s largest mining companies. We are also actively engaging in dialogues with industry leaders to explore new applications and shape a collective vision for the future of resource exploration,” explains Sahil Tapiawala, CEO and Co-Founder of Atomionics, in an email to e27.

Run by a team of 16 engineers and scientists with experience in cold atom physics, product development, and AI, Atomionics has the backing of government and technology leaders such as In-Q-Tel (a non-profit organisation founded by the CIA and various US government agencies) and Singapore’s SEEDs Capital.

Also Read: Seraya Partners Fund I hits US$800M final close, invests in 3 energy firms

It also counts on the support of angel investors such as Pamela Vagata (Former AI Lead at Stripe and one of the founders of OpenAI), Keith Adams (Chief Architect at Slack who previously led Meta’s AI research team), Alex Turnbull (prolific fund manager), and Mikhail Zeldovich (CEO Trafigura Mongolia and Vietnam).

Previous investors include Wavemaker Partners, SGINNOVATE, Cap Vista (the investment arm of Singapore Defense), Paspalis, and 500 Global.

The following is an edited excerpt of the interview with Tapiawala.

Can you tell us about the product development process of this solution?

The development of Gravio reflects Atomionics’ commitment to pioneering a future where quantum technology reshapes our interaction with the Earth’s resources.

It began with a vision to revolutionise resource exploration through advanced quantum sensing technology. Our multidisciplinary team of physicists, engineers, and AI specialists worked collaboratively, transforming this vision into reality. The development process was marked by rigorous research and testing, ensuring the integration of cold atom interferometry in a portable, basketball-sized sensor. This groundbreaking approach enables us to deliver precise, non-invasive resource mapping, setting a new standard in the industry.

Also Read: V-Flow: A promising solution to energy inequity in Africa and SEA

Our process involved merging cutting-edge quantum physics with practical engineering to create a tool that serves today’s needs and paves the way for new, environmentally conscious exploration methods. This journey has been a testament to the power of innovation and collaboration, setting the stage for even more groundbreaking advancements in quantum sensing.

What impact does the company aim to make with this product?

Atomionics is spearheading a movement towards a more responsible and sustainable approach to resource exploration. We need 500 per cent more metal and resources as part of the energy transition. Atomionics’ aim is to create a global map of the earth’s crust to pinpoint and estimate resources that will power humanity over the next 50 years. The first step in this direction is building a quantum gravimeter that can serve as a virtual drill. We envision a future where we can enable an exponentially more efficient precision exploration.

Our vision extends beyond immediate industry impacts; we aim to influence global environmental practices and contribute significantly to the preservation of our planet while meeting the demands of critical industries like energy and electric vehicles.

Is there any particular market that Atomionics is aiming for? Why Australia?

Our focus extends globally, with a keen interest in markets at the forefront of resource exploration and environmental innovation. Australia was chosen for our initial commercial deployment due to its diverse geological landscape and the presence of potential resources like oil and critical minerals for electric vehicles.

Surveying the challenging environment of Western Queensland provided us valuable insights into Gravio’s performance under real-world conditions.

This setting allowed us to demonstrate our technology’s robustness and versatility, crucial factors as we prepare to expand into other diverse geographic and industrial landscapes.

Also Read: EcoSfera helps turn your household waste into energy in the comfort of your home

What is your revenue model and path to profitability as a deep tech company?

We are focused on responding to the overwhelming interest we have received from potential customers. We are deeply engaged in understanding their unique needs and challenges, which is guiding our technology development.

By working closely with these partners, we are fine-tuning Gravio to ensure it not only meets but exceeds industry expectations. This customer-centric approach is laying a solid foundation for Atomionics’ future growth and success, as we believe that a technology truly tailored to its users is the one that will thrive in the market.

What will be the company’s major plan in 2024?

In 2024, Atomionics is poised to embark on a transformative journey. Our plan encompasses scaling our technology globally, deepening our impact across various industries, and solidifying our role as a leader in sustainable resource exploration.

We are committed to driving innovation within Atomionics and across the entire sector, fostering a future where technology and environmental responsibility go hand in hand.

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Image Credit: Atomionics

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Performance reviews are a common practice, yet they’re often a double-edged sword. On one hand, they’re seen as necessary for growth and accountability. On the other hand, they can stir up more stress than motivation and dread than development. I’ve seen firsthand how traditional performance reviews can miss the mark in creating genuine peak performers.

This isn’t just about changing a system; it’s about understanding how our brains react to feedback and stress and how this understanding can revolutionise how we nurture talent in the tech industry. Here, I’ll dive deep into why the old-school performance review might be doing more harm than good and how we can shift gears to a more brain-friendly, effective approach.

The flaws in traditional performance reviews

In the tech business, where change is the only constant, clinging to traditional performance review methods can be akin to driving with the handbrake.

Stress and anxiety

The typical performance review is often a high-stakes, high-stress event. From a neuroscience standpoint, this is crucial. When our brains are under stress, they enter a fight-or-flight mode, which isn’t conducive to open, creative thinking or learning – essentials in the tech world.

This stress response can cloud judgment, stifle innovation, and even impact mental health. This mental blockade is the last thing we need in a field that thrives on cutting-edge ideas and agile minds.

Short-term focus

Performance reviews typically happen annually or quarterly. This system inherently encourages a short-term outlook. Teams sprint to hit immediate targets, often overlooking long-term innovation and growth – vital for survival in the tech industry.

Also Read: Neuroscience to the rescue: How startups can dodge burnout

It’s like focusing on the next step rather than the marathon. This short-termism doesn’t just limit progress; it can skew the bigger picture, leaving little room for sustained, meaningful development.

Limited feedback loop

The infrequency of traditional reviews means feedback is often outdated by the time it’s delivered. Technology moves fast, so what was relevant three months ago may not be relevant today. This delay in feedback creates a gap in learning and adjustment. It’s like trying to steer a ship based on where it was, not where it’s heading. In an industry that evolves daily, real-time feedback isn’t just helpful – it’s essential.

Neuroscience insights for better performance management

Taking insights from neuroscience can offer a fresh perspective on performance management, especially in the tech sector, where mental agility and innovation are necessary.

Brain-friendly feedback

Feedback is food for the brain – how we learn and grow. But the trick is in the delivery. Continuous, constructive feedback aligns with our brain’s natural learning processes. It’s like updating an app regularly instead of waiting for the annual version upgrade. This method keeps skills and strategies fresh and relevant.

The role of motivation

Neuroscience shows us that motivation is a complex dance of neurotransmitters like dopamine and serotonin. Traditional performance reviews often miss this dance entirely. They can create a fear of failure rather than a drive for success.

In contrast, a system that recognises and celebrates small wins can boost motivation, making employees more engaged, innovative, and willing to take the calculated risks vital in tech.

Creating a growth mindset

A growth mindset – the belief that abilities can be developed – is a powerful tool in the tech industry. Neuroscience supports this, showing that our brains are malleable and capable of change throughout our lives.

Performance reviews focusing on potential and learning opportunities rather than just outcomes encourage this mindset. It’s about shifting from a ‘judging’ to a ‘learning’ approach, which can unleash a wave of innovation and problem-solving abilities in tech teams.

Rethinking performance reviews – A new approach

Knowing what doesn’t work is half the battle. The next step is crafting a new, brain-friendly performance review strategy that resonates with the innovative nature of the tech industry. Here’s how we can turn a traditionally dreaded process into a powerful tool for growth and development.

Continuous performance management

Imagine replacing the annual review with a continuous conversation. This approach, like constantly updating software, keeps pace with the rapid changes in the tech industry. Regular, informal check-ins can provide timely feedback, allowing immediate course corrections and fostering a more responsive and adaptable workforce.

Employee development focus

Shift the focus from evaluating to empowering. Instead of a report card on past performance, make each review a session for skill-building and personal growth. This can involve setting individual learning goals, encouraging professional development, and offering opportunities for new challenges. It’s about building a bridge from where the employee is to where they can be, leveraging their unique strengths and interests.

Also Read: 10x your results: The blueprint for building high-performing teams

Implementing the change – Practical steps

Revamping the performance review system is no small feat. But with the right approach, it can be a game-changer. Here’s a practical blueprint to roll out this transformation effectively.

Leadership buy-in

Change starts at the top. To shift gears on performance reviews, first, get the leaders on board. This involves showcasing the benefits of a continuous, development-focused approach – how it aligns with business goals, drives innovation, and enhances team dynamics. It’s about clearly showing the ‘why’ behind the change, ensuring leadership understands and champions the new direction.

Training and development

Once leadership is on board, focus on training managers and teams. This isn’t just about using new tools or processes; it’s about fostering a new mindset. Workshops, training sessions, and regular discussions can help embed this new approach in the company culture. Equip managers with the skills to give constructive, continuous feedback and empower employees to take charge of their development.

Measuring success

To ensure the new system is working, set clear metrics for success. This might include employee engagement scores, innovation metrics, or feedback quality. Regularly review these metrics to see what’s working and what needs tweaking. This is a continuous improvement process, much like software development – always iterating, always evolving.

In conclusion

By embracing a continuous, development-focused approach grounded in neuroscience, we can transform a traditionally stressful process into a powerful catalyst for innovation and growth.

This way not only aligns with the dynamic nature of tech businesses but also taps into the human potential of their teams. The future of performance management is about empowering, not just evaluating.

It’s time to make this shift and watch our tech teams soar to new heights of achievement and satisfaction.

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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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If we were to describe the global tech industry in 2023 with just one phrase, it would be artificial intelligence.

Its widespread popularity began in late 2022 when ChatGPT was launched by OpenAI and became an instant sensation with its ability to generate a wide array of content, from travel itineraries to codes for computer programs. Since then, the global tech industry’s centre of the conversation shifted from other popular verticals such as blockchain.

AI startups in many places around the world announced funding rounds; businesses have also accelerated their experimentation with the technology. Even the dramatic firing (and return) of OpenAI CEO Sam Altman was not enough to deter anyone from the verticals.

As we move towards the end of the year, we have one big question hanging in our mind: What is coming up next?

AI in Asia

According to data compiled by data analytics company AltIndex.com in recent coverage by e27, Asian AI companies are reported to have raised the second-highest value in funding rounds, or over US$96 billion.

Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud

“Despite the VC funding slowdown, the strong fundraising activity continued this year, tuning 2023 into the second-best year for fundraising in the AI market’s history after 2021.”

This number is also expected to continue growing in 2024 as investors give more attention to AI companies around the world.

Outside of funding, Southeast Asian (SEA) countries such as Singapore continue to put AI on their national agenda with the announcement of the National Artificial Intelligence Strategy (NAIS) 2.0 framework, which includes a tripling of its AI expert pool.

With this development, e27 predicts that AI will continue to dominate the conversation in 2024. However, there will be a heightened focus on its security and regulatory aspects.

This was affirmed by the insights shared by Bee Kheng Tay, President of Cisco ASEAN.

“In 2024, businesses in ASEAN will have to grapple with how they can weave AI into their organisations effectively, whilst taking advantage of other emerging trends impacting the business landscape,” she writes in a commentary.

Tay stresses that a movement towards responsible and ethical AI is gaining momentum.

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

“Governance, underpinned by trust and transparency, is at the forefront of this movement. While the transformative benefits of AI are evident, navigating its adoption comes with inherent risks. Organisations need a robust framework of policies and protocols to guide the ethical and responsible management of data and AI systems,” she says.

“In ASEAN, the need for enhanced AI governance is evident. Only 36 per cent of organisations claim to have highly comprehensive AI policies and protocols in place, and a concerning 21 per cent lack systematic mechanisms to detect data biases. Recognising the evolving regulatory landscape, companies must stay updated on local and international regulations. Implementing internal policies that address data privacy, security, and the ethical use of AI technology is imperative. This includes embedding security, privacy, and trust by design processes throughout the innovation lifecycle of AI applications.”

If we look at the Web3 vertical, which was the main theme of 2022, the progress we saw in 2023 is that industry players are becoming more open about working with regulators in the region.

There is a greater awareness of how far they can go by collaborating instead of competing—we saw similar changes in the fintech ecosystem years ago as more banks opted to work together with startups.

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2023 has gone by in a flash, but, as usual in the world of payments, things haven’t stood still — particularly in the fast-paced and fragmented Asia Pacific payments landscape. Statista forecasts that 61.4 per cent of global e-commerce revenue will be generated in Asia by 2024.

In a region that one could argue is the birthplace of QR code-based payments and e-wallets, the further adoption of mobile technology and digital wallets across the region has accelerated demand for cashless payments faster than ever before and, in turn, greatly improved financial inclusion.

Why is this important? According to PwC, e-wallet payments in Southeast Asia are set to exceed US$114 billion in the next two years. In fact, looking more closely at the adoption of digital payments this year in the region, this growth is attributable to many countries — but there are frontrunners.

For example, in India, digital payment transaction volumes have already rapidly accelerated post-pandemic and are expected to grow four times by 2026-2027. This is largely due to government support and adoption strategies underpinned by India’s instant real-time payment system, Unified Payments Interface (UPI) which, according to PwC, accounts for over 75 per cent of digital retail payments in the country.

UPI has set a standard that is difficult to compete with, but many around the region are trying to roll out similar initiatives with Singapore and Malaysia, and even the US is publicly commenting on their intentions.

There are also exciting growth opportunities in other key markets such as Indonesia and Malaysia, where consumers’ purchasing habits are shifting more rapidly to online – a shift which is catalysed by the rise of regional super apps like Grab, GoTo (formally known as Gojek) and of course Alipay and WeChat in China.

With so much progression in 2023, what lies ahead in 2024 in the world of Asia Pacific payment trends?

Further steps towards a regional real-time payment network

This year, we saw further linkages between the real-time national payment networks in Asia. In fact, Asia is leading the charge in the development of this real-time payments infrastructure with Singapore’s PayNow, Malaysia’s DuitNow, Indonesia’s BI-Fast, Thailand’s PromptPay, and India’s Unified Payments Interface (UPI) achieving national break-neck speed adoption with both businesses and consumers, often with direct government sponsorship.

Also Read: How digital payments are transforming the travel experience

At the national level, it has already been shown that these payment networks allow businesses to cut costs and speed up funding timeframes. The focus of the connectivity of these networks across borders up to now has largely been remittance and making payments easier for travellers.

2024 will see a major push of the use of these interconnected national real-time payment platforms into e-commerce applications, allowing consumers to use their locally preferred national platform to purchase goods and services from merchants who, in turn, get a cheaper real-time settlement.

Payments in the palm of your hand

Blockchain and the use of biometrics in authorising payments are two of the technological trends that we expect to see grow within the payments ecosystem and will help redefine the way payments work, making payments faster and greener. These are evolving quite quickly at the moment, and the impact will be seen in the coming years.

Innovation in these two areas is also driving the need to enhance customer privacy and security, particularly as e-commerce scams have continued to metastasise across Southeast Asia (SEA), with US$700 million being lost to scammers operating mainly from Malaysia, Indonesia, and Vietnam. This issue is expected to remain a major concern as cyber attackers become even more sophisticated in their operations.

Security using biometrics is also creating seamless experiences for consumers – these are being tested by many businesses now and could end up having a huge impact on payments in the next two to three years. Just last month, at the Singapore Fintech Festival, MasterCard showcased new biometric payment technology, which is in the early stages of rollout, demonstrating how a simple face scan can be used as payment for coffee.

In China, biometric payments have been showcased before but are now gaining traction, with the latest adopter being the global fast-food chain McDonald’s, which uses palm scans. For the first time, biometric payments have hit the mainstream, and with further research and innovation, we could expect to see such emerging technology becoming more embedded in our daily lives — who needs their phone in the palm of their hand when you can seamlessly check out with nothing but your palm!

Global reach, local payments

With the competition intensifying between merchants competing for a larger slice of the cross-border e-commerce pie, 2024 will witness an increasing emphasis on convenience, security, and customer-centric solutions.

One noteworthy trend will be the continued rise of local payment methods as a major focus of e-commerce merchants. This trend has been fuelled by various factors, which have transitioned millions of users from cash-based transactions to digital payments.

This shift away from traditional payment methods is a global phenomenon and is already embedded deeply in how consumers in APAC and SEA like to pay. It is now more imperative than ever that merchants looking to further capture the opportunity in ASEAN cater towards local payment preferences.

Also Read: Can Singapore truly become a cashless society with payment 3.0?

Buy-now-pay-later (BNPL) or cashback schemes will continue to be important. Cash-strapped consumers impacted by the rising costs of living are opting for simplified and innovative ways to pay that also maximise their tight budgets while being rewarded for their loyalty. This has become increasingly difficult to support given the increased cost of capital and an investor focus on profitability. However, where there is demand, there is supply, and merchants should ride this wave.

Digital currency adoption speeding up settlement

Digital currencies will also evolve in 2024. The central bank in Singapore has announced plans to pilot the live issuance and use of wholesale central bank digital currencies (CBDCs) next year to facilitate real-time cross-border payments and settlements.

Whilst this is unlike retail CBDCs, which cater to everyday transactions, it signifies a step forward for the future of payments, and it will only be a matter of time before consumer e-commerce applications become available.

As always, next year in 2024 will bring new innovation and fresh and exciting applications of existing infrastructure that businesses and merchants will need to keep abreast of.  The payments landscape in Asia continues to tell an evolving and compelling story with unrivalled opportunities in the region’s multi-trillion dollar e-commerce industry.

But with advancement comes complexity. To truly make the most out of this scenario, businesses and merchants need to understand the importance of tracking local payment preferences to improve their checkout processes across borders and achieve long-term success in the region.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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As we wrap up 2023, let’s take a look back at the e27 Contributor Programme’s journey. This article delves into the noteworthy milestones, newly integrated features, and the overarching growth that has defined the programme’s evolution.

At its core, we examine the strategies employed in cultivating a thriving community, narrating a tale of progress and collaboration that has been integral to the programme’s success.

Growth, reach, programme highlights

In 2023, our contributor community experienced an unprecedented surge, welcoming 651 contributors and fostering a diverse pool of voices, resulting in the publication of 750 articles from the e27 community.

Our growing contributor pool includes founders, investors, startup and corporate employees, consultants, academics, and students. Going above and beyond, we’ve attracted contributors from Silicon Valley and Ireland to Australia and Estonia, fostering a truly global community. This expansion not only enriched our content but also strengthened our connections with entrepreneurial ecosystems worldwide.

Our exploration of diverse content forms throughout the year included a dedicated quarter for a writing club. During this period, contributors collaborated on thought leadership articles with our editors. We introduced monthly themes covering funding, tech layoffs, and AI to provide continuous inspiration. These efforts aimed to guarantee that our contributors consistently found engaging subjects to ponder and write about, resulting in a substantial enhancement of our content’s overall quality and relevance.

In recognition of our contributors’ outstanding efforts, we acknowledged the Top 50 contributors of 2023 and published their names in a series of listicles. You can check them out here:

• Top 10 contributors steering transformation in the tech community
• Top 10 contributing startup founders shaping the tech industry
• Top 10 contributors in communications and marketing excellence
• Top 10 contributors investing in innovation and emerging tech
• Top 10 women contributors spearheading resilience in the startup landscape

Innovations

Since its inception, our commitment has been to foster our growing family of contributors, recognising the profound enrichment that arises from shared learning. Day in and day out, the pursuit of strengthening this dynamic community and enhancing our service to contributors propels our efforts forward.

This year, we took a step to bestow well-deserved recognition upon our contributors, spotlighting their unique voices and perspectives. Introducing a contributor-only leaderboard allows real-time visibility of the most popular voices on e27. We also implemented a follow button, enabling users to keep track of their favourite thought leaders and receive timely notifications of their latest articles.

Looking ahead to the coming year, expect the following enhancements:

• A comprehensive statistics dashboard offering valuable insights
• An enhanced user interface for a seamless and user-friendly experience
• Advanced data security and privacy measures to ensure user confidentiality

We’ve introduced the Contributor Spotlight series, where we feature one of our finest contributors each week. This series provides a platform for contributors to share insights into their personal and professional ventures, showcasing outstanding contributors and delving into the breadth of their knowledge and expertise.

Community engagement

In the past year, we hosted two virtual sessions for our contributor club, fostering connections among contributors and the broader community. Collaborating closely with our contributor community, we assessed our existing offerings and brainstormed innovative ideas to enhance the platform. The valuable feedback collected from the community will be pivotal in shaping our journey in the coming year.

We facilitated an open discussion among our contributors, and the consensus pointed towards greentech as the key trend in the upcoming year. We eagerly anticipate your ideas and perspectives on greentech, sustainability, e-waste, ESG, and climate tech.

Lastly, we started an exclusive newsletter for our contributor community, ensuring contributors stay informed about the latest updates and facilitating their writing journey with themed prompts and curated resources. Introduced last quarter, the newsletter has received a warm response and moving forward, we aim to enhance it as a direct communication channel with the e27 editors.

In wrapping up 2023, we extend our gratitude to each contributor who has made our community thrive. The e27 Contributor Programme has evolved, and together, we’ve created a dynamic space for thought leadership and collaboration.

Looking ahead to 2024, we are excited about the possibilities and innovations shaping the next chapter of our contributor program. Thank you for being a vital part of our journey.

Happy New Year and happy holidays!

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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Feeling left behind lately on how startups are doing in Southeast Asia? Needing quick updates on what’s trending in terms of innovation and technology in the region? Lacking time to read detailed startup news and reports?

e27’s newest offering — Startup Ecosystem Roundups — may just be what you need.

These roundups are designed with short overviews of what’s new, recent and trending in the startup scene of 5 countries, in a format that’s easy and convenient to read. Ranging from the most popular stories in the industry to how many startups and unicorns exist, each snapshot is created with the objective of providing all that you need to know about the latest in the startup scene in Southeast Asia.

Check below for the updates on the country you’re looking for.

1. SINGAPORE

TOP 5 STORIES OF SINGAPORE:

• How New Zealand and Singapore are working together to build a great future with tech
• Singaporean VC firm Integra Partners backs German cleantech startup CleanHub
• Startup Genome: Singapore remains top startup ecosystem for clean tech, blue economy 
• Earth VC backs US-based lithium-silicon battery firm Group14
• Gen Z is saying no to climbing corporate ladders. Here’s what it means for Singapore’s startup ecosystem 

2. INDONESIA

TOP 5 STORIES OF INDONESIA:

• E-motorcycle adoption in Indonesia: How to tap into this US$19.2B opportunity
• Innovations in prosthetics, custom parts, property construction: Startups that hit the headlines this week
• SEA companies making waves with funding, innovation, expansion
• Startups soar: Pawprints Inspired, Upworth, BeeX raise funding; Indonesia’s VC shift; and TômTex’s US$4.15M boost
• Fintech VC Flourish Ventures banks US$350M to double down on emerging markets

3. VIETNAM

TOP 5 STORIES OF VIETNAM:

• Vietnamese music games publisher Amanotes invests in Swedish startup Reactional Music
• Attractive valuation, quick COVID-19 recovery keep Vietnam attractive for investors: Dragon Capital’s Hieu Vo Tran Dinh
• How these trio grew BuyMed into a B2B healthtech brand with a reach in 12K+ townships in Vietnam
• Discover TikTok Shop: The ultimate shopping-entertainment experience in Vietnam
• ADB Ventures, Touchstone join US$3M round of Vietnamese EV maker Selex Motors

4. PHILIPPINES

TOP 5 STORIES OF THE PHILIPPINES:

• BNPL startup Atome renews US$100M debt facility for expansion in Philippines
• How Salmon aims to promote financial inclusion with AI banking in the Philippines
• How soonicorn GrowSari plans to expand its reach to 300K sari-sari stores in Philippines
• Driving financial inclusion in the Philippines: Why last-mile communities are key to winning the battle
• The rising tide: The Philippines’ thriving startup ecosystem and strong support

5. THAILAND

TOP 5 STORIES OF THAILAND:

• Ecosystem Roundup: Bukalapak, 500 join hands for early-stage investments; Thailand beats Indonesia in Q1 VC funding
• E-scooter rental startup WeMo nets US$15M for Thailand, Indonesia expansion
• Why Japan’s tech leaders are eyeing Thailand as a 2023 growth market
• How Hungry Hub survived the pandemic to become a leading player in special occasion dining in Thailand
• Ecosystem Roundup: JD.com to quit Indonesia, Thailand; Sea to add 2K+ jobs in Malaysia; EdenFarm secures US$13.5M

To download the startup ecosystem roundups as a PDF file, click here.

To stay updated on the startup ecosystem in Southeast Asia, follow e27 on Instagram, Facebook, Twitter and LinkedIn.

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Imagine Southeast Asia, a region where mom-and-pop stores predict demand with AI, logistics companies optimise delivery with algorithms, and startups level the playing field against established giants. This reality isn’t very far away. In fact, it’s the near future fueled by artificial intelligence. 

We are already seeing how AI has the potential to improve efficiencies, productivity and profitability across industries. Singapore’s grocery retailer FairPrice Group, for instance, is using AI to forecast workload and manpower needs at each retail store better while offering more flexible shifts of shorter duration so that stores can run efficiently and optimally while minimising customer wait times.

It is even considering using generative AI in expiry date management for goods in stores to reduce food wastage. TD Tawandang, which serves mom-and-pop stores in Thailand, is also using AI to help its retail distribution teams forecast demand and schedule deliveries for just-in-time stock replenishments.  AI has also been playing an important role in detecting and preventing fraud, increasing security for both consumers and merchants. 

Businesses are facing a rapidly changing landscape, and many across the region have shifted their focus to monetisation in a bid to achieve profitability targets, moving from user acquisition to deepening engagement with existing customers.

AI solutions will be essential for businesses that want to stay ahead of the competition, particularly for startups as well as micro, small- and medium-sized businesses, which account for over 90 per cent of businesses in Southeast Asia. We believe that tapping on AI isn’t just about playing catch-up; it’s about leapfrogging the competition and carving out a new future for Southeast Asia’s business. 

We see this as an opportunity, especially with the latest 2023 e-Conomy SEA Report by Google, Temasek and Bain & Company projecting that the region can potentially be a US$1 trillion digital economy by 2030.

Accelerating both digital inclusion (direct access to technology and the internet) and removing barriers to digital participation (direct consumption of digital products and services) are some of the ways to get us there.

Also Read: Bridging continents: Lessons learned from Singapore and Estonia’s tech journeys

But it’s important for businesses to keep a finger on the pulse and adopt new technologies, such as AI tools, that can fuel growth and help improve operational efficiency. While we’ve seen various startups and local businesses already finding ways to adopt AI into their business strategy, here are additional ways to seize the opportunities to maximise progress: 

Maximise AI accessibility and encourage adoption

Technology competitions are often won — not by the first to invent — but by the best to deploy. To harness the full potential of AI, it must be universally accessible and useful, and this includes helping startups and small businesses access AI. This includes providing digital coaches and training to underserved communities. Low-interest loan and grant programs can also improve access to the capital needed to spur adoption more widely.

Google for AI Startups Cloud Program, for example, enables seed to Series A startups that use AI as its core technology to develop primary products or solutions to receive cloud service credits of up to US$350,000 over two years. Pre-seed startups can receive up to US$2,000 in free cloud credits in two years to fund the development of proofs-of-concept and showcase of products to prospective investors and customers.

Businesses can also take advantage of Vertex AI — an enterprise-ready AI development platform that allows their developers to gain access to over 130 Google and open-source foundation models for summarising and translating text in multiple languages, turning audio into text and more. These models can then be customised and embedded easily into internal or consumer-facing applications and websites.

Build an AI-ready workforce

AI presents opportunities to catapult economies forward through increased productivity and economic activity that can benefit everyone. We believe an AI-ready workforce will be able to navigate these challenges, and we can do so by extending AI training programs to communities while helping workers impacted by AI get the skills needed to quickly bounce back to new and better jobs. 

Governments can play a role in incorporating AI as a core component of education and establish a safety net with an AI adjustment assessment program with tailored skilling programs, with Singapore’s nationwide AI skilling initiative as a good model to follow.

However, companies can and should encourage upgrading AI skills in the workforce through micro-certifications and e-learning. Free generative AI skills development courses like Google Cloud Skills Boost Program or skilling programs through online learning platforms can help develop a solid understanding of the difference between generative AI and other types of AI, how to customise pre-trained generative AI models for use in applications, how to apply AI responsibly and more.

Have a bold, creative and curious mindset

The advancement towards AI marks the third paradigm shift that we are seeing; the first is the arrival of the Internet as we revolutionise information and services adoption; the second is the explosion of mobile computing driven by smartphone adoption.

Also Read: These Artificial Intelligence startups are proving to be industry game-changers

As with the Internet and smartphones, we need to strategise the adoption of AI. It’s important that we exercise caution in the face of uncertainty to mitigate potential risk. As with any powerful new tech, we must be bold and actively work to understand AI and its implications for our customers and even marketing activities. 

The power of AI also enables us to discover endless possibilities for creativity through direct collaboration and experimentation. We are rapidly moving to a world where the constraints on what you can create in digital spaces are limited only by your imagination. It helps us connect emotionally with customers and frees us from cumbersome processes to solve entirely new creative and strategic challenges.

Lastly, the adoption of new technologies requires curiosity to think expansively about how they can best serve your purpose. For example, digital retailers in Southeast Asia today are seeing new challenges, with shoppers willing to turn to their second-preferred brand or retailer and can shop across multiple channels, from search and video to social media.

In fact, more so than in other regions, customers are shopping across multiple channels. Specifically, 76 per cent of shoppers use five or more channels like search, video and social media to shop during peak sales events. We need to be curious enough to seek solutions and stay hyper-relevant to rise above fragmented shopping behaviours.

A good example is from e-commerce platform Lazada, which adopted an AI-powered, full-funnel marketing strategy for its 6.6 sales event this year to influence customers’ preferences at every stage of the purchase journey, including using AI-powered search ads to dynamically show up on all new and unexpected queries from shoppers likely to buy its products.

So the question is, are you curious enough to be the student today so you can lead your organisation to an AI transformation as a teacher tomorrow?

As AI advances, it will only become more important for all stakeholders to come together to pursue an opportunity agenda that harnesses its potential in the challenges that societies face today. We believe that AI can empower more local businesses in the region, and the best way to get ahead in the age of artificial intelligence is to be creative and innovative in applying it in our businesses.

It’s okay not to have all the answers about AI, but it’s important we start asking the questions and exploring them with boldness and curiosity. If we subscribe to the belief that this AI shift is going to be even greater than the movement from dial-up internet to a mobile-first, cloud-driven web, imagine what will be possible in the next 30 years.

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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

Join our e27 Telegram group, FB community, or like the e27 Facebook page

Image credit: Canva

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