e27 has been recognised by the Financial Times as one of the fastest-growing companies in APAC for 2025. This is the first time we’ve made the list and it is an honour and privilege. We have been diligently executing our Mission to create platforms that curate information and connect stakeholders, driving the sustainable growth of the Southeast Asia tech ecosystem over the past years and this recognition comes just after our biggest year ever.

The Financial Times, in collaboration with Statista, employs a rigorous evaluation method to spotlight APAC companies achieving exceptional growth based on compound annual growth rates (CAGR) from 2020 to 2023. Qualifying companies are required to demonstrate significant organic revenue growth, with a minimum revenue of US$100,000 in 2020 and US$1 million in 2023.

During COVID-19, we made a challenging transition from a pure events-only play to a hybrid offline and online business matching and ecosystem engagement platform. The last four years have been a good partnership between our clients, stakeholders and the ecosystem in figuring out what ecosystem building means today and how we can continue to support and develop financially sustainable companies.

Our growth has been driven by our passion to engage and support the SEA tech ecosystem and actively collaboration with the regional stakeholders towards creating impactful and sustainable programs.

Today, e27 offers a multitude of programs and services including:

• Echelon Singapore and Echelon Philippines, which is now the largest event platform in Southeast Asia for startups, SMEs, corporates, governments, and investors, designed to deliver impactful insights and forge meaningful connections.
• Flux, an intimate event with a workshop and masterclass format helping to educate the next generation of SME and Startup leaders.
• Innovation Programs across Southeast Asia with global companies such as Meta, Prudence Foundation, Branch to foster ecosystem partnerships and engagement activities between corporates and startups.
• Thought leadership content, access to startups and investor information across e27.co and our social channels to inspire and educate Founders. Our Contributor Programme, which is a strong community program between ecosystem stakeholders and e27, continues to power high quality thought leadership content for the SEA tech ecosystem.

None of this would have been possible without the amazing team at e27 and their passion and dedication towards wanting a better SEA tech ecosystem.

We will continue to push hard and our end Vision is a unified Southeast Asia tech ecosystem that drives collaboration, innovation, and global leadership.

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Key highlights:

• Global financial markets remain uncertain amid central bank indecision
• Corporate earnings and new US tariffs set to impact investor sentiment
• Energy markets show resilience, while equities and bonds signal caution
• Bitcoin sentiment is weak, while Ethereum shows potential for recovery
• April 2 tariffs could be a major turning point for global markets

The global financial landscape today, March 21, 2025, is a complex tapestry woven with threads of uncertainty, cautious optimism, and shifting economic priorities. Let’s unpack this and offer my perspective on what’s driving these dynamics, where things might be headed, and what it all means for investors, policymakers, and everyday people keeping an eye on their financial futures.

Global risk sentiment and central bank ambiguity

The global risk sentiment being described as “tentative” feels like an apt reflection of the moment we’re in. Central bank meetings, which are typically a cornerstone for market stability, seem to have left us with more ambiguity than clarity. It’s not uncommon for these gatherings—whether it’s the Federal Reserve, the European Central Bank, or others—to set the tone for monetary policy expectations, influencing everything from interest rates to currency strength.

But when they raise “more questions than answers,” as the Market Wrap notes, it signals a lack of consensus or a hesitancy to commit to bold moves. Perhaps central bankers are grappling with the same uncertainties as the rest of us: inflationary pressures that refuse to fully subside, geopolitical tensions exacerbated by trade policies, and a global economy that’s still finding its footing post-pandemic.

My take is that this ambiguity is less about indecision and more about a deliberate wait-and-see approach. Central banks are likely holding their cards close, waiting for clearer signals from corporate earnings and trade developments before making significant policy shifts.

Corporate earnings, tariffs, and market reactions

Speaking of corporate earnings, they’re poised to be the next big litmus test for the markets. Investors are hungry for guidance, and rightly so. With tariff fears casting a long shadow, the performance of major companies could either bolster confidence or deepen the unease.

In the US, where the MSCI US index slipped by 0.2 per cent, the energy sector’s modest 0.4 per cent gain stands out as a bright spot. This uptick aligns with the rise in Brent crude prices to US$75 per barrel, fuelled by OPEC+’s new schedule for oil output cuts.

It’s a reminder that energy markets remain a critical driver of sentiment, especially as supply constraints—like the US sanctions on a Chinese refinery tied to Iranian oil—tighten the screws further. For American investors, the upcoming earnings season will be a chance to see if companies can navigate these headwinds, particularly with new tariffs looming on the horizon.

Those tariffs, announced by US President Donald Trump to take effect on April 2, are a game-changer. The promise of both broad reciprocal tariffs and sector-specific measures suggests a continuation of his administration’s aggressive trade stance.

From my perspective, this move is less about economic protectionism in a vacuum and more about geopolitical leverage. Trump’s strategy seems to hinge on using tariffs as a bargaining chip—pressuring trading partners into concessions while signaling strength to domestic audiences. The timing, just over a week from now, adds urgency to the mix.

Also Read: Tariffs, Fed moves, and crypto: Navigating a volatile March 2025

Markets hate uncertainty, and with Asian equities already showing mixed responses and US equity futures pointing to a flat open, it’s clear that investors are bracing for turbulence. The delay of the European Union’s proposed tariff on American whiskey this week feels like a small reprieve, perhaps a diplomatic nod to avoid escalating tensions further, but it’s a drop in the bucket compared to the broader tariff storm brewing.

In China, the focus on bellwethers like Xiaomi Corp. and Tencent Holdings Ltd. is particularly telling. These tech giants have been at the heart of China’s recent stock surge, a rally that’s defied global headwinds to some extent. Investors are now asking whether this momentum is sustainable or if it’s a house of cards built on speculative exuberance.

My view is that China’s market resilience reflects a mix of domestic policy support and a pivot by companies to diversify away from US-centric supply chains—a direct response to past tariff pressures. Xiaomi’s push into emerging markets and Tencent’s dominance in digital ecosystems could provide the earnings firepower needed to keep the rally alive. But if these reports disappoint, it might expose cracks in China’s economic facade, especially as US sanctions and tariffs tighten the noose on key sectors like refining.

Financial indicators and the energy-crypto divide

Shifting to the financial indicators, the US Treasury yields dropping—with the 10-year at 4.24 per cent and the 2-year at 3.96 per cent—suggests a flight to safety amid the uncertainty. Lower yields typically signal that investors are seeking the relative security of government bonds over riskier assets, a trend reinforced by the US Dollar index’s 0.4 per cent gain as it consolidates recent losses. Gold holding firm above US$3,000 per ounce further underscores this cautious mood—it’s the classic safe-haven play.

Yet, there’s a paradox here: Brent crude’s 1.7 per cent rise indicates that not all risk assets are out of favour. My interpretation is that we’re seeing a bifurcated market—energy and commodities holding up due to supply-side dynamics, while equities and bonds reflect broader trepidation about growth prospects.

Now, let’s dive into the cryptocurrency angle, which adds another layer of intrigue. Bitcoin’s market sentiment hitting a two-year low, as per CryptoQuant’s Bull Score Index of 20, is a stark warning. This index, blending ten metrics like network activity and investor behaviour, paints a picture of a “weak environment” unlikely to support a sustained rally.

Historically, Bitcoin needs a score above 60 to fuel significant price surges, and prolonged periods below 40 align with bear markets. As someone who’s tracked crypto’s rollercoaster ride, I see this as a natural ebb in the cycle. The euphoria of past bull runs—often tied to macroeconomic stimulus or institutional adoption—has given way to a sober reality.

Regulatory scrutiny, energy cost debates, and now tariff-induced economic uncertainty could be dampening enthusiasm. For Bitcoin holders, this might feel like a gut punch, but it’s not necessarily a death knell. Markets move in waves, and a bearish phase could set the stage for a stronger rebound if fundamentals like adoption or halving effects kick in later.

Also Read: When tariffs danced with Bitcoin and markets held their breath

Ethereum, meanwhile, offers a glimmer of hope amid the gloom. Its price hovering around US$1,970, with a key support level at US$1,861, suggests resilience. The nine per cent recovery earlier this week, followed by a 3.5 per cent dip, shows volatility but also potential. If that US$1,861 support holds, a push toward the March 7 high of US$2,258 isn’t out of the question. The technicals back this up: the RSI climbing to 40 from an oversold 30 indicates fading bearish momentum, though it needs to break 50 for a confirmed recovery.

The MACD’s bullish crossover and rising green histograms above zero add to the case for upward strength. From my standpoint, Ethereum’s outlook hinges on broader market sentiment and its ability to differentiate itself from Bitcoin’s struggles. If tariff fears ease or corporate earnings surprise to the upside, ETH could ride that wave. But a break below US$1,861 would open the door to a drop toward US$1,700—a level that could test the resolve of even the most ardent HODLers.

The interconnectedness of markets

Stepping back, what strikes me most about this Market Wrap is the interconnectedness of it all. Tariffs don’t just affect trade balances; they ripple through equity markets, commodity prices, and even cryptocurrencies. Central bank hesitancy amplifies the noise, leaving corporate earnings as the next beacon.

My point of view is cautiously pragmatic: we’re in a transitional phase where old playbooks—whether for stocks, bonds, or crypto—are being rewritten. Investors should watch China’s tech giants for signs of durability, lean into energy’s relative strength, and brace for tariff-driven volatility. For crypto enthusiasts, patience might be the best strategy—Bitcoin’s malaise and Ethereum’s teetering recovery suggest a market in purgatory, awaiting a catalyst.

In conclusion, the global economy today feels like a tightrope walk. The stakes are high, and the safety net is fraying. I see my role as cutting through the noise to spotlight the data and trends that matter. Right now, that means recognising the weight of tariffs, the pivotal role of earnings, and the fragile state of risk assets like crypto.

We’re not in freefall, but we’re not on solid ground either—April 2, when those tariffs hit, could be the tipping point that defines the next chapter.

—

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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For one reason or another, Western markets, especially the US, dominate headlines about hybrid and remote work. But two recent articles reporting on a Brookings study took another look at the topic, spotlighting the rest of the world, including Asia.

In a The New York Times story essay called “Where in the World Are People Back in the Office?“ a global team of reporters share how Asia is officially behind on global markets regarding workplace flexibility.

“Many Asian countries have lower levels of remote work than countries in Europe and North America. Asia’s work-from-home levels were the lowest, with South Koreans working less than two days per month remotely, Japan two and Taiwan under three,” the article recaps the findings of a global study on work-from-home.

I was honoured to provide some context for the article, sharing with reporter Emma Goldberg that virtually all companies are back in the office in Vietnam and providing one of the reasons why: “A lot of people here don’t have their own places. Working from home at the kitchen table with three generations running around is not the best environment to be productive.”

Apartments, offices, and lockdowns

Matthew Boyle’s article in Bloomberg, “Return-to-Office Is a US$1.3 Trillion Problem Few Have Figured Out,” echoes this: “In Hong Kong, tiny apartments and an efficient public transport system have given residents fewer reasons to work from home. There, subway ridership surpassed 2019 levels in March, and empty office space is more tied to decreased Chinese investment than remote work.”

How long and intense COVID-19 hit each country played a massive role, too.

The NYT article quotes ITAM economist Jose Maria Barrero, who helped lead the Brookings study: “There were many countries in Asia that controlled early waves of COVID-19 pretty well without extended lockdowns. They didn’t have this experience where they had to hunker down for months on end working from home and get adapted to it.”

This lack of extended lockdowns explains why many workers never left their offices in countries like South Korea and my “home” of Vietnam. 

In Singapore, with its extensive circuit-breakers, it was a very different situation. But it’s not only because Singaporeans worked from home longer than others in Asia during COVID-19 that explains the widespread adoption of hybrid work in the red dot.

Also Read: Is hybrid work arrangement the future of work?

The active promotion of the hybrid work model by the Singaporean government, the professional work culture, and the high level of digitisation all contributed to the uptake of flexible working models. 

As a result, when surveyed towards the end of 2022, one in two Singaporean hybrid workers said they would consider quitting their job if they could no longer work hybrid.

This attitude starkly contrasts with Vietnam and other more developing markets in the region. Strong micromanagement and a lack of trust in employees, limited digitisation, and –as mentioned above– impractical work-from-home setups make widespread hybrid work adoption impossible.

According to Glints and MHV data, even early-stage startups, usually the first to adopt workplace flexibility, are back in the office full-time in markets like Vietnam (83 per cent) and Indonesia (33 per cent).

That’s not to say hybrid won’t happen here; the countries just have to mature, as I discussed with Home Credit Chief People Officer Alexis Pham in a recent CEEC Event. Alexis made excellent points about how we’re so early in Vietnam’s development that we must train companies’ readiness to go hybrid in the following years. 

A highly diverse region

As I recently shared with Jeremy Au on the BRAVE podcast, when I first moved from Chicago to Singapore in 2014 in a regional role for the advertising agency Ogilvy, I learned quickly that Asia is much more diverse than I could have imagined. 

Yes, this is a cluster of geographically close countries, but the cultures and levels of development are vastly different. That’s why you see such extreme differences between countries in South-East Asia.

A recent Center for Creative Leadership (CCL) highlighted eight key elements that shape the way Southeast Asian countries adopt hybrid – or not: 

• National culture: “Indonesian people may need more control, so we can’t let them work independently.”
• Organisational culture: “Implementing hybrid was not too hard in our organisation since the culture mainly centres on trust and empowerment.”
• Industry: “Our line of business is banking, which is closely related to operations and service; therefore, some units are unable to do hybrid work.”
• Function: “While we have transitioned our customer service teams to hybrid, other functions are expected to come into work.”
• Role/nature of work: “For gaining knowledge/information, we can do a hybrid work style; however, for harnessing wisdom, a face-to-face mode is still more effective.”
• Leader level: “For negotiations at a top-management level that require not only logical communication but also emotional communication, face-to-face is essential.”
• Generation: “The seniors needed more time to adapt to the new situation since they were used to doing everything face-to-face. Meanwhile, the Millennials didn’t have much problem embracing the hybrid policy.”
• Leader personality: “As we left the hybrid discretion to our managers, we realised that some leaders transitioned quite easily while others struggled.” 

These reasons, combined with some structural challenges highlighted by the New York Times and Bloomberg articles, explain how the (non) adoption of hybrid and remote work varies so wildly by market.

What hybrid and remote employees want 

For companies that did embrace hybrid and remote work, it remains a puzzle to make the flexible models work. We recently surveyed hybrid and remote employees in the US and noted that less than half of them are satisfied with their current schedules, managers, and support.

Also Read: Myths vs reality: Remote and hybrid managers report high productivity and trust

Common best practices, as introduced by ‘remote pros’ like Gitlab and Buffer, such as clear communication, documentation by default, and attention to diversity and inclusion, are not widely practised yet by managers.

This lack of strong hybrid management muscles echoes the manager research I shared here on e27 earlier this year, in which one in two managers said they wanted more training in communicating and collaborating with their hybrid teams. 

It also shows that beyond Asian markets lagging, even countries and companies that have embraced hybrid still have a lot to figure out. And that’s fine – things have changed so significantly in the past three years. 

To make it work, leaders should continue to listen to their teams, understand what works and what doesn’t, implement new efforts, listen, and improve further. 

We’re all on this journey together. 

—

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

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This article was first published on September 26, 2023

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The article presents Calcey’s bullish case for Sri Lanka as the next breakout premier hub for the global IT industry. It highlights several factors that contribute to Sri Lanka’s position, including:

• Strong education system with a cultural affinity for STEM: With many students in STEM programs and Western education brands offering English-taught courses, Sri Lanka excels in STEM education. High English literacy rates further bolster this advantage.
• High ranking as an outsourcing destination: For several years, Sri Lanka has been recognised by a myriad of organisations and associations such as Startup Genome, A.T. Kearney, IBM and many more for its affordability, and diversity of its talent. 
• Democratising tech skills: Led by one of the wealthiest businessmen in Sri Lanka, who has launched an initiative providing free STEM education online and on national TV to enhance the supply of engineers, scientists, and more. 
• Rising interest in remote IT jobs: There’s a growing demand for remote IT jobs. Many seek global companies offering USD-pegged salaries, with families encouraging careers in software engineering.
• Thriving tech companies: Companies like WS02 and Virtusa are showcasing Sri Lanka’s potential in the global IT sector, reflecting a vibrant and dynamic tech ecosystem.

A cultural affinity for STEM

When you think of India, particularly South India, you immediately think of the abundance of technical talent, and rightfully so. Sundar Pichai, Satya Nadella, and Indira Nooyi all hail from South India, and the region is a renowned hub for producing top-tier tech talent. Sri Lanka and the southernmost part of India are separated by less than 100 kilometers.

In many ways, Sri Lanka has cultural traits and practices similar to South India’s. Many South Indians, and in general, Indians have a strong inclination towards the fields of Science, Technology, Engineering and Mathematics (STEM). India boasts the 2nd highest number of total graduates from STEM per year and fifth for the highest percentage of STEM graduates.

In Sri Lanka, there is a similar trend towards students selecting STEM fields for their secondary and higher education. Like South India, most parents in Sri Lanka encourage their children to pursue these fields. As a result, the country has many prospective students studying and pursuing STEM fields. 

 

Our analysis of the University Grant Commission’s latest data shows precisely that. In 2022, undergraduate enrolment for STEM courses in Government/State Universities accounted for 34 per cent of total enrolments.

Similarly, STEM faculties in Sri Lanka combine to produce more than a quarter of all undergraduates coming out (i.e., completing) of state universities. Although this figure is not as high as India’s (34 per cent), it is on par with France (26 per cent) and higher than the percentage produced by the US (20 per cent). 

Access to foreign institutions

The numbers we’ve mentioned above include only State Universities. In Sri Lanka, enrollment your to enroll at a State University, it depends on your performance, with preference given to top-performing A/L students. As a result, many students are denied the chance to attend government universities due to a lack of available openings.

So what happens to everyone else? Fortunately, Sri Lanka is also home to 27 Private Universities that offer programs affiliated with many well-known Universities in the UK and Australia. The students who don’t get accepted to State University, and those who completed their secondary education at private institutes can attend these universities.

Also Read: From civil war to innovation: nVentures’s Chalinda on the rise of Sri Lanka’s entrepreneurship

A majority of the private universities in Sri Lanka specialise in offering STEM programs. For example, the largest private institute — the Sri Lanka Institute of Information Technology (SLIIT), has 10K students and is accredited by the Institution of Engineering & Technology, UK. Students also have the luxury of choosing programs from Universities such as Monash, University of London, and Deakin University among many more. 

Furthermore, early this year, to improve its competitiveness and position itself as an education hub, the Government of Sri Lanka approved a proposal by the Ministry of Education to enter MOUs with several foreign universities from the US, UK, China, and Australia.

In another win for the IT industry, the globally renowned Information of Information Technology (IIT) India announced that Sri Lanka would be the destination for their 3rd foreign branch. IIT has produced several Indian business leaders, notably Sundar Pichai, Narayana Murthy, and Bharat Desai. The introduction of foreign programs to state universities and the entry of well-established foreign institutions such as IIT significantly improves access to quality education, particularly around STEM fields, and will further enhance the technical capacity of Sri Lankan talent. 

Democratising tech skills

Along with the availability of private universities that focus on technology and engineering (e.g., SLIIT. SLTC, etc.), students in Sri Lanka have also had the opportunity to participate in and attend several other IT programs that enhance their technical skills.

These programs provide students access to world-class global material and courses from institutions such as Google, Harvard University, etc., accelerating their tech career and enhancing their competitiveness within the global talent pool.

Some notable programs in the country include: 

• Google Summer of Code: Google Summer of Code is a global, online program focused on bringing new contributors into open source software development.. Participants work on a programming project lasting 12 or more weeks with an open-source organisation, receiving guidance from mentors. Now in its 20th year, Sri Lanka has been one of the most famous participants, participating since its inception in 2004. The University of Moratuwa has led participation in the program for many years and accounts for one of the highest total participation by a single university in the program. 
• DP Education: Founded by one of the wealthiest men in Sri Lanka, DP Education, founded by Dhammika Perera, is an initiative focusing on increasing quality and access to digital education and learning. The platform has partnerships with Microsoft, The University of Moratuwa, UNICEF, Age of Learning, and more, and it provides a variety of courses across programming, coding, robotics, and general technology skills. D.P. Education received ‘The Disruptor Award‘ by Bett Asia in 2023 for its innovation in reshaping the education landscape. According to a recent article, the program has helped boost the IT sector by empowering 30K students through 142 campuses.
• Springboard: Founded by Calcey in 2023, Springboard is a no-strings-attached scholarship to students who participated in MOOCs (Massive Open Online Courses) from the world’s best universities, curated by Calcey’s engineering leaders. The curriculum, which consists of courses from universities and organisations such as Harvard, Georgia Tech, IBM, University of Michigan, and TUDelft, was delivered via its exclusive partner, EdX.com. The program concluded in mid-2024 and provided more than 20 students with a blended learning approach, equipping them with adequate skills for the demands of the global tech environment. 

Advanced english proficiency

Sri Lanka has a higher literacy rate than its neighbours in Asia boasting a rate of 92 per cent. The government has two official languages, Sinhala and Tamil. However, English is considered a link language between many people in the country. In practice, English in Sri Lanka plays a significant role.

It is used in the Supreme Court, is prevalent in media and advertising, is resurging in education, and is the preferred language in private business and commerce. Among many people, especially in the capital of Colombo, English is considered a native language. This should be no surprise, as the island was a British colony for over 100 years. 

Though most of the population use Sinhala as their primary language medium during their education, they begin to learn English at the start or during pre-school, as shown in the figure below. The data from British Council also show that students are also spending considerable time learning English in school, with 50 per cent of students spending between 3-6 hours per week on English. The report also found that 75 per cent of students chose to study English outside school.

 

Furthermore, according to the latest IELTS data,  the standardised English language proficiency test for non-native English speakers globally, Sri Lanka ranks higher compared to other countries in the Asian region. As shown in the figure below, the average performance by Sri Lankans in the Academic exam ranks 7th highest in Asia. It significantly outperforms the average score of 6.1 among Asian students.

Also Read: Small market, big dreams: Meet the 30 Sri Lankan startups that are punching above their weight

The government of Sri Lanka is placing further emphasis on English proficiency and hopes to roll out the’ English for All’ by 2030. These initiatives, combined with many young Sri Lankans consuming digital content primarily in English, show that the country is well on its way to further increasing the number of people ready to contribute to the global economy. 

The allure of USD salaries

Traditionally, for companies employing Sri Lankan workers, remuneration was paid out in the country’s local currency, the Sri Lankan Rupee (LKR). In 2022, when Sri Lanka went through an unprecedented economic crisis, the Rupee reached an all-time low relative to the US Dollar. While many companies were struggling to stay afloat, the tech sector was mostly facing a brain drain. Many of the highly skilled personnel in the country were seeking opportunities abroad.

As a result, these companies, primarily those offering software outsourcing services, decided to provide salaries pegged to the USD. Calcey Technologies was one of the first companies to start paying salaries adjusted to US dollars in 2022; here is what CEO and Co-Founder Mangala Karunaratne had to say:

“We started moving towards USD-pegged compensation in the early part of this year. As with all our other great ideas, this too was actually suggested by our own people. The fact that 70+ other IT/BPO firms have since done the same suggests that we were right.”

The currency has stabilised, but the trend of employees seeking USD or Euro payouts is prevalent. According to an independent analysis, more than 192 companies out of 300 currently offer remuneration pegged to a foreign currency. As the employees of foreign contractors are exempt from local income taxes, it makes them even more attractive to prospective employees. Consequently, many young and aspiring individuals look to work in the tech sector, specifically for companies offering these benefits. 

As a result, there is a significant opportunity for companies to enter and operate in the Sri Lankan market, specifically companies that can offer Sri Lankan IT talent the ability to work with a global clientele, compensate them in foreign currency, and enjoy economic benefits. 

Where do the top minds land?

I’ve made the case for why Sri Lankan IT talent ranks among the best in the world for companies looking to augment their operations or begin an evergreen venture. But where does all the top-tier talent work? Throughout the article, we’ve drawn several similarities between Sri Lanka and South India.

However, one instance where the difference is evident is the presence of large multinational IT companies. Several cities in South India are home to offices from Google, IBM, Amazon, and Microsoft, among others. The presence of large MNC’s results in many IT workers in India preferring to work for these global giants, as well as unicorn local startups that offer employees equity.

However, in Sri Lanka, there are no FAANG offices or delivery centres. As a result, the top-tier talent tends to go to companies that can offer them competitive forex-pegged salaries and the ability to work closely with foreign clients, and they are most often the IT/software outsourcing companies.

While Sri Lanka lacks the presence of the FAANGS of the world, Sri Lanka is home to some notable success stories. For example, early this year, Colombo founded, open-source software company WS02 was fully acquired by one of the largest Private Equity companies in the world, EQT for 600M. In 2021, global engineering services giant Virtusa, founded in 1997 in Sri Lanka, was acquired by Baring Private Equity Asia for US$2B in 2021, marking one of the largest tech deals in Asia.

Sri Lankans also developed ‘The Millenium Exchange’, the Electronic Trading Platform responsible for powering the London Stock Exchange, and many other exchanges across the globe. In 2009, Millennium IT, the company that developed the product, was acquired by the London Stock Exchange Group for a deal estimated to be worth US$30M.

Despite these companies’ global successes, they are still deeply rooted in Sri Lanka. WS02 and Virtusa are headquartered in the US, and LSEG in the UK, but all of these companies still maintain their primary delivery centres in Colombo.  This is a testament to the overall technical capacity of Sri Lankan talent, and its ecosystem.

The pearl of the delivery world?

These success stories and the abundance of highly skilled technical talent have helped accelerate Sri Lanka’s overall IT capabilities. Sri Lanka is typically an outsourcing destination for back-office services (BPO).

However, many foreign companies are realising the untapped potential that Sri Lanka has to offer vis a vis their strong English proficiency, focus on STEM, and the inclination for employees to showcase their talents on the global front. In the recent past, we’ve seen several well-known brands set up in Sri Lanka, looking to capitalise on the talent pool.

Notable examples include: 

• OceansXYZ: Oceans hires operational talent in Sri Lanka and matches them with world-class startups around the globe. Founded in 2022, the company employs more than 250 people from Sri Lanka. In a recent interview, this is what OceansXYZ Founder Ian Myers had to say about Sri Lankan talent.

“I realised there is nowhere on the planet with a better price-to-talent ratio than Sri Lanka.There are a few reasons for this. One is their strong university system with close ties to the U.K. university system. You have a very Western-educated population. The difference between Sri Lanka and for instance, The Philippines, is that remote workers typically handle customer service roles. In Sri Lanka, the workers are experienced in accounting, growth marketing, sales, admin operations, and finance. This island probably has the most CFAs per capita out of any country worldwide.”

• Ernst and Young Global Delivery Services (GDS): In 2021, EY established a GDS delivery centre in Sri Lanka, employing over 250 personnel in roles across finance, accounting, analytics, human resources, consulting, and more. The company aims to double its workforce by 2025.
• HCL Technologies: In 2020, HCL established a global delivery centre in Colombo. In 2021, HCL expanded its presence in Sri Lanka by opening a new facility that can house around 4000 employees.

“Sri Lanka is one of HCL’s key global delivery hubs and we are very excited to continue expanding our operations in the country with the opening of our new office here,” – Prateek Aggarwal, Chief Financial Officer, HCL Technologies.”

Also Read: Singapore, Sri Lanka named as top Asian emerging ecosystems for cleantech startups

Although the total number of companies present is still less than in other major outsourcing hubs such as India, Vietnam, and the Philippines, global companies entering Sri Lanka to establish delivery centres and capitalise on talent is not a recent phenomenon. 

Many of these companies use Sri Lanka as their primary delivery hub or use the abundance of talent available to augment their overall delivery capabilities. Regardless of the model deployed, almost all of them have doubled down on their Sri Lankan operations and continue to enjoy the benefits of both cost arbitrage and engineering arbitrage (i.e., the benefits of software engineering and cost reduction as a part of it).

Conclusion

If you’ve made it through to this section, congrats! I bet we’ve laid down a fact-based and objective analysis of why Sri Lanka is the next breakthrough destination for servicing the global IT industry. This little island and its picturesque scenery offer some of the best talent you can find in the world, along with robust infrastructure to support it.

The cultural attitudes that drive students to pursue STEM fields and occupations, the quality of its private education system, the emergence of impactful tech focused micro education programs, and strong English proficiency are all positive factors that contribute to Sri Lanka’s position as a premier hub for the global IT industry. 

In addition, the growing demand among the prospective and current working population to work for global companies and earn in foreign currency provides international companies looking to enter the Sri Lankan market with a highly competitive advantage. 

Calcey is proud to be a part of this thriving ecosystem, and remains deeply rooted in Sri Lanka. We specialise in transforming legacy systems, building scalable products, and guiding companies through the complexities of software development. We specialise in creating successful outsourcing partnerships based on:

• Skilled, remote-ready developers: Access a global talent pool of passionate developers who thrive in remote environments.
• Independent, self-managing teams: Our model empowers teams to work autonomously, fostering ownership and accountability.
• Focus on tools and communication: We ensure your team has the tools and clear communication channels to collaborate seamlessly.

Want to learn more? Our free eBook, “The Remote Team Blueprint” explores our proven strategies in depth.

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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 us on Instagram, Facebook, X, and LinkedIn to stay connected.

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This article was first published on August 2, 2024

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Dear reader,

Singapore’s tech startup ecosystem is showing resilience amid shifting investment patterns in Q1 2025.

While total funding dipped 9.1% year-on-year, the quarter saw a strong 30.8% recovery from Q4 2024. The standout trend? Late-stage startups dominated, with funding surging 110.2% quarter-on-quarter, highlighting investor preference for mature, de-risked ventures.

Enterprise Infrastructure emerged as the clear winner, attracting a record US$640M—over 3,000% growth from Q4 2024. In contrast, fintech and high tech saw steep declines, reflecting shifting priorities in the region’s digital economy. Meanwhile, early-stage startups faced a funding crunch, raising concerns about long-term innovation pipelines.

Singapore retained its stronghold, securing 95% of total SEA startup funding. The quarter also saw a steady pace of unicorn creation, with Sygnum joining the club. While acquisitions outpaced IPOs, investor interest remained high, signalling a maturing ecosystem. The recalibration suggests a more selective, strategic approach—one that favours stability and scalability.

…..

And, we have given the Ecosystem Roundup a fresh new look—cleaner, sharper, and more insightful—along with exciting new content categories to bring you even more value.

Enjoy reading!

Sainul,
Editor.

REGIONAL NEWS

Top-funded business models reveal shifting tech investment priorities in SEA
According to the latest SEA Tech Quarterly Funding Report by Tracxn, the types of business models that attracted the most capital in Q1 2025 clearly reflect investor sentiment and changing market dynamics.

Motion Ventures launches US$100M maritime tech fund in Singapore
Over the next 18 to 24 months, Motion Ventures Fund II plans to invest between US$250,000 and US$10,000,000 in at least 25 companies.

Venturi Partners launches US$225M Fund II for Asian consumer brands
Venturi’s Fund will continue to focus on high-growth areas such as retail, education, healthcare, and FMCG in India and Southeast Asia.

Funding Societies raises strategic equity investment from Gobi Partners
The SME lender said it has already disbursed over US$4B in business financing to approximately 100,000 SMEs and processed annualised payments gross transactions of over US$1.4B.

Malaysia’s wealth management startup Versa bags US$6.8M Series A
The investors are AHAM Asset Management and Tengku Fahad Mua’adzam Shah | Since launching in 2021, the platform has grown to offer nearly 20 conventional and Shariah-compliant funds.

Kyberlife lands US$3M to scale regional healthcare marketplace
The investors include 5I Ventures, East Ventures, A2D Ventures, and NUS Alumni Ventures | Kyberlife connects research and healthcare suppliers globally with laboratories, healthcare institutions, and research centres in SEA.

Higala extends seed round to bring instant payments to underserved banks in PH
The investors are 1982 Ventures and Talino Venture Studios | Higala broadens financial access across the Philippines by integrating rural banks, thrift banks, commercial banks, and e-money issuers into its network.

Malaysia’s secondhand furniture startup Unearth secures funding
1337 Ventures is the investor | Unearth offers a full-service model that includes furniture pickup, refurbishment, and resale | With the new funding, Unearth plans to enhance its supply chain operations and improve refurbishment processes.

SG competition watchdog says no Grab-GoTo merger notice received
While aware of merger discussion reports, CCCS advised the companies to seek legal advice to comply with competition laws | It remains open to engagement through its merger notification and pre-notification discussion processes.

Meet the winners of East Ventures’s IndoBuild AI inaugural Demo Day in Jakarta
IndoBuild AI, launched earlier this year, serves as a platform designed to equip AI innovators with resources to develop practical solutions.

FEATURES AND INTERVIEWS

Techcoop CEO on scaling agritech, sustainable farming, and global expansion
By digitising everything from inventory management to invoicing, Techcoop enables users to increase revenue while reducing operational costs.

With Giken Sakata partnership, 5.0 ROBOTICS is bringing human-centered robotics to Southeast Asia
The partnership includes a plan to set up an academy to upskill traditional manufacturing workers and train new talent in 5.0 ROBOTICS tech.

How Pyxis aims to help the maritime industry achieve net-zero goals with its electric vessels
Pyxis R requires only the power equivalent of three to four hairdryers to cruise along the Singapore River.

INTERNATIONAL NEWS

SoftBank acquires AI data centre chipmaker Ampere for US$6.5B
Ampere specialises in CPU chips for data centres, focusing on applications in AI | Ampere’s CPUs, built on Arm architecture, are used by Oracle, which will sell its stake in the company along with Carlyle Group.

Vertex Ventures Japan launches with US$67M fund to propel Japanese startups globally
The new fund will focus on high-growth sectors, including deeptech, AI, digital transformation, and the creator economy.

FOMC lits a spark: US equities, treasuries, and cryptocurrencies all riding the waves
The Fed held rates steady, slowed QT, and fuelled market optimism, driving equities, crypto gains, and a cautious global economic outlook.

Saemin Ahn returns to Rakuten Capital
He rejoins the firm after a stint at 500 Global | Ahn was instrumental in establishing Rakuten’s CVC initiative, which was launched as Rakuten Ventures in 2014 | Over nearly a decade, he helped steer the fund’s early investments in technology startups across Asia and the US.

Bitcoin falls to US$81,300 as gold shines ahead of FOMC meeting 2025
Markets brace for the FOMC meeting as gold surges, stocks slip, and geopolitics stir uncertainty in a complex financial landscape.

One of Tesla’s top Wall Street supporters says Elon Musk faces a ‘moment of truth’
“If you agree or disagree with DOGE it misses the point that by Musk spending 110% of his time with DOGE (and not as Tesla CEO) since President Trump got back into the White House this has essentially turned Tesla into a political symbol,” Wedbush’s Dan Ives wrote.

SEMICONDUCTOR

Singapore’s semiconductor stars: A look at key players and startups
Singapore’s neutral geopolitical stance and efficient logistics system make it an attractive hub for chipmakers looking to diversify their supply chains.

‘The future of semiconductor manufacturing is regional’: Global TechSolutions CEO
Kenneth Lee discusses how Global TechSolutions leverages its regional network across Singapore, Malaysia, and Taiwan to overcome semiconductor industry challenges.

South Korea’s semiconductor revolution: The startups behind the boom
South Korea’s semiconductor startup industry is thriving with government-backed initiatives, including a US$19.1B support programme, mega chip clusters, and an ecosystem fund.

ARTIFICIAL INTELLIGENCE

Singapore explores AI-driven defence autonomy with Anduril
Anduril’s Lattice for Mission Autonomy software platform will be utilised to develop autonomous behaviours that allow soldiers to make informed decisions quickly.

Why AI needs context and curiosity, not toxic positivity
Savvy data practitioners now realise that governance, while never sexy, has taken on a new and heightened importance in the age of AI.

Startup in the AI era: Building global companies ‘piece by piece’
Fractional entrepreneurship is reshaping Korea’s startup ecosystem, enabling professionals to launch ventures while maintaining careers.

Why we’re saying “no” to DeepSeek for now
This article examines the various factors that influenced my company’s decision to postpone the adoption of DeepSeek.

More choices, less hassle: Unlocking retail magic with AI and tech
The retail sector is evolving to meet emerging generations’ expectations for hyper-personalised, seamless experiences.

LLM prompting, fine-tuning, RAG, or AI agents: Which AI is better for marketing?
In today’s fast-evolving digital landscape, the key is to match your AI strategy with your business’s scale, resources, and goals.

How to use Gen AI-enabled chatbots for workplace safety?
By using the power of Gen AI, industries can not only meet but exceed current safety standards, setting a new benchmark for the future.

Beyond the inbox: How SEA startups can drive growth with AI-powered communication
According to Stephen Hamill of 8×8, growth fueled by AI-powered engagement will become a critical to startup communication strategies.

Small business, big impact: How AI is democratising entrepreneurship
AI isn’t just for bigshots; discover how small businesses are using it to personalize, build free websites & go global.

THOUGHT LEADERSHIP

Navigating the capital winter: Strategies for successful fundraising in a slow market
As the capital winter could be prolonged, it is time for the founder to know how to survive and sustain longer and wisely.

Securities Commission of Malaysia’s new regulatory sandbox summarised
Malaysia’s new regulatory sandbox will enable more innovative capital market products and services such as tokenised securities.

Skills for the gig age: Empowering workers in Malaysia for the future of work
The gig economy can prove to be the solution to reduce the stagnant unemployment rate that Malaysia has been plagued by.

Bridging the skills gap: Empowering companies in Malaysia for success
As Malaysia continues its journey towards economic prosperity, bridging the skills gap remains a pressing priority.

Why startups need mobile apps to thrive in today’s competitive market
Discover how mobile apps can boost startup success, increase visibility, and drive revenue in today’s competitive digital marketplace.

The double-edged sword of personal branding: A journey of discovery
Building a personal brand is not a decision to be taken lightly, nor is it a one-size-fits-all solution for career advancement.

Unlocking startup investment: The vital role of virtual data rooms
Craft your data room thoughtfully, and it will become a strategic asset in your quest for capital and growth.

Skill-based hiring vs industry-based hiring: How should one decide?
Before an employer starts the hiring process, it is imperative to note the pros and cons of both to proceed.

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HEINEKEN has announced the establishment of its first Global Generative AI (GenAI) Lab in Singapore, marking a significant milestone in the brewer’s digital transformation journey. Developed in collaboration with AI Singapore, the lab aims to harness the potential of GenAI to enhance productivity, customer engagement and operational efficiency across its global business.

The new GenAI Lab will serve as a central hub for the development of scalable AI solutions designed to tackle complex business challenges, ranging from intelligent financial reporting to next-generation customer support systems.

It will also play a key role in standardising AI-driven solutions for implementation across HEINEKEN’s global operations.

Ronald den Elzen, Chief Digital and Technology Officer at HEINEKEN, underscored the strategic importance of this move. “HEINEKEN aims to be the world’s best-connected brewer. GenAI will play an increasingly important role in understanding consumer needs, enhancing customer engagement, and improving productivity throughout the company.”

“The establishment of the Global GenAI Lab marks a significant milestone in HEINEKEN’s digital transformation journey, highlighting our strategic focus on advanced GenAI technologies as essential drivers for growth, efficiency and innovation,” he said.

The Lab will operate as an ongoing partnership with AI Singapore. It will foster continuous knowledge exchange and talent sharing, combining HEINEKEN’s digital specialists with AI Singapore’s expertise.

Also Read: Tech taps into beer: 5 ways breweries are winning with digital transformation

A highly specialised full-time team is expected to be in place by the end of 2025, drawing talent from both organisations and tapping into Singapore’s robust AI ecosystem.

Kenneth Choo, Managing Director, APAC, HEINEKEN, highlighted the lab’s regional significance. “By taking this significant step, HEINEKEN is strategically positioning ourselves for a resilient and thriving future, reaffirming our commitment to Singapore and the Asia Pacific region,” he said.

“By harnessing Singapore’s exceptional AI ecosystem, skilled talent and supportive government policies, we are excited to drive the development of innovative solutions that will transform the beverage industry for years to come.”

The GenAI Lab’s research and development agenda will focus on creating intelligent agentic systems capable of solving complex problems autonomously. Planned applications include automated marketing content creation, intelligent financial reporting, advanced customer support, and knowledge management systems.

Laurence Liew, Director of AI Innovation at AI Singapore, expressed confidence in the collaboration’s potential impact. “We are excited to partner with HEINEKEN on this long-term strategic collaboration, marking them as the first organisation to work with AI Singapore in building an AI lab and centre of expertise for AI innovation.”

“By combining HEINEKEN’s industry expertise with AI Singapore’s cutting-edge AI capabilities and talent, we are creating a powerful model for how private and public sector collaboration can drive innovative solutions with real-world impact.”

Venturing into GenAI

HEINEKEN’s venture into GenAI builds upon its existing track record of leveraging AI technologies. Previous initiatives include a financial insights platform providing instant access to a decade’s worth of financial data and the KIM (Knowledge and Insight Management) system, which streamlines how marketing teams access consumer and market insights.

Also Read: How beer delivery startup Wishbeer raised US$300K in funding — by using Facebook Ads

The company outlined its dual focus for GenAI projects: developing accessible AI tools to boost individual employee productivity and building specialised applications to solve functional challenges.

“Our most impactful AI products are designed to tackle business challenges and are chosen based on their potential to create value or provide a strategic edge,” a HEINEKEN spokesperson explained. “Our product lifecycle always starts with the end user, and our GenAI products are tailored to their needs and developed to solve their pain points.”

Beyond the Lab, HEINEKEN continues to scale AI initiatives across markets. In Mexico, AI has transformed distribution processes, with 80 per cent of orders now placed online. AI tools guide sales strategies, helping determine promotional targets or predict customer churn.

Several AI-driven products have already had a measurable impact on the company. The Artificial Intelligence Data-Driven Advisor (AIDDA), deployed in eight markets, supports 490,000 daily customer engagements by guiding sales representatives on optimal actions.

The Product Recommender system, active in seven markets, offers personalised suggestions based on customer behaviour, while Falcon, an image recognition tool, simplifies retail audits.

In marketing, Allocation AI optimises spending across brands and channels, delivering incremental gross profit in three markets. Additionally, the Promo Advisor suite enables targeted promotion planning and optimisation, supporting sales growth and return on investment.

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Image Credit: HEINEKEN

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The tech industry has undergone seismic changes over the past two decades, with advances in artificial intelligence (AI), cloud computing and mobile technology reshaping the global digital landscape. Yet beyond the technical revolutions, the human side of the sector is evolving too—particularly for women.

According to the Tech Salary Report 2025, experienced women in tech are among those most likely to acknowledge that workplace culture has improved.

Among professionals with over 20 years in the industry, 64 per cent of women believe the culture has become better, compared to just 46 per cent of their male counterparts. This makes women nearly 1.5 times more likely to report positive changes in their work environments.

“Early in my career, I faced significant gender bias,” shared one woman with more than 25 years of experience in the sector. “I needed to get an MBA just to be considered for the same roles my male colleagues walked into. It’s exciting to see younger women coming in now and being trusted with complex roles right from the start. That was almost unheard of when I began.”

This reflection encapsulates a wider trend that suggests a gradual shift in the culture of the tech industry, especially for women. While challenges remain, there is a growing sentiment among seasoned female professionals that progress is finally tangible.

Also Read: From authentic leadership to talent investment: 5 proven tips to win the startup game

The past two decades have seen technology professionals ride a wave of innovation, from the rise of JavaScript reshaping software development to AI and machine learning now dominating conversations around the future of tech. Yet, for many women, the most remarkable change has been the slow but steady improvement in inclusivity and opportunities.

Significant changes in the tech industry

Despite economic uncertainties, salary trends in 2024 remain robust. The average tech professional now earns US$112,521 annually—a modest 1.2 per cent increase from the previous year.

However, when adjusted for purchasing power, today’s figures remain almost identical to those from 2005. Industries such as consulting, software, and banking/finance lead the pack, offering salaries exceeding US$125,000.

AI expertise has also emerged as a premium skillset. Tech professionals responsible for AI projects earn nearly 18 per cent more than their peers, underscoring the growing value placed on this area.

Interestingly, while entry-level salaries have seen consecutive declines, mid-career professionals with three to five years of experience enjoyed the most significant salary growth in 2024.

Against this backdrop of fluctuating compensation trends, women in tech are standing out for another reason—higher levels of salary satisfaction. The report identifies women, alongside consultants, experienced professionals, software developers, and those with security clearances, as the groups expressing the most contentment with their pay.

Also Read: Future-proofing talent management: The impact of AI on retention in Southeast Asia

This relative satisfaction is noteworthy, given that overall satisfaction with compensation is declining across the industry. The reasons behind women’s greater contentment remain unclear, but the finding suggests a narrowing of the historical pay gap, at least among certain demographics.

Career mobility also plays a crucial role in earning potential. The report highlights that the sweet spot for switching jobs among those with over two decades of experience is between four and ten times. Those who change roles six to nine times throughout their careers tend to achieve the highest salaries.

For women, particularly those who navigated male-dominated environments early on, this strategic job mobility may have contributed to both career growth and compensation satisfaction. As one seasoned professional reflected, seeing younger women ascend the ranks more swiftly is a testament to the pathways carved out by earlier generations.

Still, challenges remain. The tech industry continues to grapple with broader issues, including diversity gaps at leadership levels and persistent biases.

However, the data from the Tech Salary Report 2025 offers a glimmer of progress—an acknowledgment from women who have witnessed, and helped shape, two decades of industry change.

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Image Credit: Mimi Thian on Unsplash

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Fore Coffee, a leading premium coffee retail chain in Indonesia, has announced its intentions to launch an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX).

Trading under the ticker symbol “FORE”, this strategic move is designed to bolster the company’s ambitious expansion plans.

Fore Coffee will offer 1.8 billion ordinary shares to the public, representing 21.08 per cent of its total issued and fully paid-up capital. The indicative offering price has been set between IDR 160 and IDR 202 per share, potentially raising up to approximately US$23.2 million (IDR 379.8 billion).

Also Read: The 2 forces shaping coffee consumption and how Fore Coffee uses them to push for growth

The company intends to allocate 76 per cent of the net IPO proceeds to expand its outlet network across Indonesia. It targets establishing around 140 new coffee outlets over the next two years.

A further 18 per cent of the raised capital will be used to open new doughnut outlets via its subsidiary, while the remaining 6 per cent will be used for working capital purposes.

The book-building period commenced on March 19 and will conclude on March 21, 2025. The indicative public offering period is slated for March 26 to April 9, 2025.

“We see a huge opportunity in the Indonesian premium coffee market, and this IPO will give us the resources we need to capitalise on that opportunity,” stated Vico Lomar, CEO of Fore Coffee.

“Fore Coffee’s IPO is a historic moment that reflects the solidity of their sustainable business model. We believe this IPO will accelerate Fore Coffee’s expansion process, open up opportunities to reach more coffee lovers across Indonesia, and strengthen their position as an innovation leader in the coffee industry,” commented Willson Cuaca, President Commissioner of Fore Coffee and co-founder and Managing Partner at East Ventures.

Established in 2018 with an online-to-offline business model and the tagline “Grind the Essentials,” Fore Coffee has grown to become a leading company. As of September 2024, the company boasted 217 outlets across 43 cities in Indonesia and Singapore, including 61 new openings in 2024 alone.

The company claims to have demonstrated significant financial growth, with net sales surging by IDR 418 billion (135 per cent year-on-year) to IDR 727 billion as of September 2024, up from IDR 309 billion in September 2023. Gross profit also witnessed substantial growth, increasing by IDR 252 billion (128 per cent year-on-year) to IDR 447 billion in the same period. Furthermore, Fore Coffee’s EBITDA growth rose by an impressive 187 per cent year-on-year to IDR 135 billion in September 2024.

Also Read: Fore Coffee sharpens business strategy to achieve profitability

According to a Redseer Analysis report from December 2024, the Indonesian coffee market is projected to expand at a compound annual growth rate (CAGR) of 11 per cent over the next five years, reaching a potential market size of US$12.6 billion (IDR 206 trillion based on an exchange rate of IDR 16,350 to USD). Fore Coffee caters to diverse customer needs through its three outlet formats: flagship, medium, and satellite.

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As a startup lawyer, we regularly get feedback from overseas clients that  navigating the different government entities and accessing the support system can feel overwhelming considering the vast number of entities which also raises questions about potential overlap in duties. 

This article looks at several government agencies and their respective functions. We hope that they may be useful for you in pinpointing the correct entity when you need to access support such as funding or other assistance.

Ministry of Science, Technology and Innovation (MOSTI)

MOSTI acts as the central authority, spearheading national policy and initiatives that will help startups thrive in the country. 

The latest national agenda is the  Malaysia Startup Ecosystem Roadmap (SUPER) 2021–2030, which aims to make Malaysia a preferred startup ecosystem in the region for the next decade.  The top-down approach usually entails guidance for other agencies to comply and follow from time to time.

Cradle Fund Sdn Bhd (Cradle)

As a funding agency, Cradle serves as a critical source of capital for pre-seed or seed startups. 

In the past, Cradle has experimented with different funding products, ranging from cash grants to equity financing using redeemable preference shares. Presently, Cradle offers 2 funding products, namely CIP Spark, which funds up to RM150,000 (US$32,250) and CIP Sprint, which is a form of conditional convertible grant of up to RM600,000 (US$129,000) for commercialisation initiatives. 

Additionally, Cradle is in charge of MYStartup portal, a new centralised platform offering valuable information known as the ‘Single Window Initiative’. MYStartup portal is aimed toward anyone from aspiring founders to VCs new to the startup scene in Malaysia seeking resources, and connections to navigate Malaysia’s startup ecosystem. For instance, Cradle regularly organises events such as startup accelerator and investor matching events.

Malaysia Digital Economy Corporation (MDEC)

Founded in 1996, MDEC was formed as the lead agency to implement the MSC Malaysia initiative. takes the lead in propelling the growth of the digital economy in Malaysia. 

As an agency, the entity also conducts activities ranging from talent development and market access to activities designed to get people involved in the digital economy. 

As a foreign founder, MDEC plays key functions in helping foreign companies, such as obtaining work visas, especially for technopreneurs who want to start a company or move their existing company to Malaysia. For a company, MDEC also assists in the Malaysia Digital Status (formerly known as MSC Status), which usually entails specific tax incentives for its successful recipients.

Also Read: Gear up and grow: Key regulatory updates for Malaysian startups in H1 2024

Malaysia Venture Capital Management Berhad (MAVCAP)

This government-owned VC firm provides equity financing to high-growth Malaysian companies, primarily focusing on later-stage startups (Series A onwards). As the government’s VC, MAVCAP may invest directly or via a “fund-of-funds” structure by investing in other leading VCs such as Gobi Partners and 500 Global.  

MAVCAP also deploy capital via the “fund of funds” structure, especially to first-time fund managers and regularly comes in as an anchor investor, which seeks to further grow the local venture capital ecosystem.

Malaysian Research Accelerator for Technology & Innovation (MRANTI)

MRANTI is a newly merged entity of two former government entities, Technology Park Malaysia (TPM Corp) and the Malaysian Global Innovation and Creativity Center (MaGIC). MRANTI is Malaysia’s central research commercialisation agency, helping high-technology adoption in the country. 

MRANTI is headquartered at MRANTI Park, an extensive 686 acres in Kuala Lumpur, supporting the growth of smart manufacturing, biotech, agritech, smart city, green tech and enabling technology clusters and offers leasing of the space for interested tenants.

According to a local news article, the entity may be in the midst of another rebranding exercise, so we may likely have to wait if it will also entail any change in the entity’s mandate.

Khazanah Malaysia Berhad 

Khazanah, Malaysia’s sovereign wealth fund of Malaysia is expected to play a more active role in the startup space it announced the Dana Impak (‘Impact Fund’) in 2023, an RM6 billion (US$1.29 billion) commitment over five years aiming to address critical national challenges such as healthcare, social mobility, food and energy security, and climate change via capital investment.  

Also Read: How can Malaysia leverage AI for growth and not see it as a threat?

At the KL20 Summit 2024 this year, the prime minister announced that Khazanah would provide an initial RM1 billion (US$215 million) allocation via a national “fund of funds” to invest in Malaysian companies.

Therefore, we may likely foresee further announcements in the future on other partnerships, such as VCs that may be selected as the fund manager to be deployed by Khazanah.

To date, the sovereign wealth fund has announced several partnerships with  VCs such as Gobi Partners, 500 Global, Antler, and ecosystem players like Plug and Play as investors in view of getting more local startups funded. In addition to the “fund of funds” structure, Khazanah may also invest directly in startups (which may likely involve larger ticket sizes, such as from Series B onwards, such as recently in PolicyStreet, an insurtech startup). 

The government also announced that present government’s “fund of funds” funding entities such as MAVCAP and Penjana Kapital  will be under Khazanah’s supervision, which indicate bigger role that the fund will be involved in the startup ecosystem.

Malaysian Technology Development Corporation (MTDC)

Since 1992, MTDC has been the first government VC to invest in SMEs. The present funding mandates include early-stage technology companies that are involved in deep-tech or present peripheries that may complement the government’s current initiatives. 

The funding structures usually entail equity financing in the investee via Redeemable Convertible Preference Shares (RCPS).

Malaysia Debt Ventures Berhad (MDV)

MDV was established in 2002 to offer more flexible and innovative financing products to develop the technology sector. MDV ordinarily provides venture debt or quasi-debt financing to selected companies that fulfil its funding conditions. 

Final thoughts

It is crucial to note that Malaysia has an extensive network of other government agencies that may also be available and relevant. Therefore, it is crucial for you to understand the specific functions and objectives of these government entities so that you can figure out the necessary resources and programmes available from them. 

As a founder, it is worthwhile to stay up to date on the latest initiatives launched by these entities so that you can leverage specific insights that may be beneficial to your startup.

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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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Image credit: Canva Pro

This article was first published on July 26, 2024

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The global financial landscape has been buzzing with activity following the Federal Open Market Committee (FOMC) meeting, where the US Federal Reserve opted to keep benchmark interest rates steady within the 4.25 per cent to 4.5 per cent range, a decision that was broadly anticipated by markets.

This move, coupled with a significant reduction in the pace of quantitative tightening (QT)—slashing the monthly redemption of US Treasury securities from US$25 billion to US$5 billion—has injected a dose of optimism into US equities, propelling a rally that saw the MSCI US index climb by 1.1 per cent.

Fed Chair Jerome Powell, in his post-meeting press conference, struck a cautious yet steady tone, acknowledging the swirling uncertainties tied to President Donald Trump’s sweeping policy shifts while emphasising that the central bank is in no rush to tweak borrowing costs.

Powell’s message was clear: the Fed can afford to wait for the dust to settle on these policy changes before making any bold moves. This measured approach seemed to resonate with investors, who found comfort in the Fed’s updated projections and its handling of inflation and growth forecasts.

Diving into the numbers, the Fed’s dot plot—a key indicator of future rate expectations—held steady, signalling two rate cuts anticipated for the year, with no notable shift in dispersion among committee members. However, the Fed did adjust its economic outlook, trimming the median growth forecast for 2025 to 1.7 per cent from 2.1 per cent, a nod to potential headwinds, while nudging up the median inflation forecast to 2.8 per cent from 2.5 per cent.

Markets, however, latched onto Powell’s reassurance that the uptick in the core Personal Consumption Expenditures (PCE) projection is confined to 2025 and likely transitory. This distinction quelled fears of entrenched inflation, allowing risk sentiment to advance.

The immediate market reaction was telling: equities surged by the end of Powell’s presser, US Treasuries flipped course with the 2-year yield dipping below 4 per cent and the 10-year yield shedding 4 basis points to 4.24 per cent, while the Dollar Index edged up 0.2 per cent. Gold, ever the barometer of economic unease, rose 0.4 per cent to a record US$3,048 per ounce, and Brent crude ticked up 0.3 per cent to US$71 per barrel. These movements paint a picture of a market buoyed by easier financial conditions yet still hedging against uncertainty.

Across the Pacific, the Bank of Japan (BOJ) mirrored the Fed’s steady hand, holding interest rates unchanged as expected. Governor Kazuo Ueda offered a cautiously optimistic take, noting that wage hike momentum remains on track—a critical factor for Japan’s long battle against deflation—but tempered this with concerns over US trade policies, a clear nod to the potential ripple effects of Trump’s agenda.

Similarly, Bank Indonesia followed suit, keeping its benchmark rates steady, aligning with market expectations. Asian equity indices, however, showed a mixed response in early trading, reflecting the region’s sensitivity to both US developments and local dynamics. Meanwhile, US equity index futures pointed to a higher open, suggesting that Wall Street’s rally might have legs yet.

Also Read: Startup in the AI era: Building global companies piece by piece

The cryptocurrency market, often a bellwether for risk appetite, didn’t miss the beat either. Bitcoin soared past US$86,800 on Wednesday, a nearly five per cent jump, fuelled by the Fed’s signals of looser financial conditions and growing investor bets on a liquidity-driven rally.

The Fed’s decision to slow the runoff of its US$6.8 trillion balance sheet—capping Treasury redemptions at US$5 billion per month—aims to avert disruptions in funding markets, especially as debt ceiling tensions loom large. This dovish tilt has weakened the US dollar, which posted its third-largest three-day drop since 2015, while Treasury yields and bond market volatility have tumbled.

In the crypto space, the ETH/BTC trading pair ticked up from 0.23 to 0.24, a sign that investors are leaning into riskier assets like Ether over Bitcoin’s relative safety. Ether’s rise, though lacking an immediate catalyst, comes as the Ethereum network gears up for its Pectra upgrade, a major update set to roll out over 20 Ethereum Improvement Proposals (EIPs). These include EIP-7702, enhancing smart account functionality, and EIP-7251, which boosts validator staking limits—moves that promise to improve scalability and user experience, potentially stoking further interest in Ether.

From my perspective, the Fed’s latest stance is a masterstroke of pragmatism. By holding rates steady and dialling back QT, Powell & Co. are threading the needle between supporting growth and keeping inflation in check, all while navigating the wild card of Trump’s policy shifts. The market’s upbeat response—equities popping, yields dropping, and risk assets like Bitcoin and Ether surging—suggests that investors are interpreting this as a green light for risk-taking, at least in the near term.

The Fed’s acknowledgment of slower growth and higher inflation in 2025, paired with its “transitory” caveat, strikes me as a calculated effort to manage expectations without spooking markets. It’s a delicate dance, and so far, the Fed seems to be leading with confidence.

Also Read: A shifting global landscape: Trade wars, market sentiment, and the rise of crypto amid uncertainty

That said, the muted revisions to the dot plot—still pointing to two cuts—feel a tad optimistic given the uncertainties Powell himself flagged. If Trump’s policies (think tariffs, tax cuts, or deregulation) ignite inflation or disrupt trade, the Fed might find its hands tied, forced to choose between rate hikes that could choke growth or holding pat and risking credibility on inflation.

Globally, the BOJ’s steady stance feels like a missed opportunity. Japan’s economy could use a jolt, and with wage hikes gaining traction, a slight nudge on rates might have signalled more conviction in its reflationary push. Ueda’s caution about US trade policies is valid—Trump’s “America First” rhetoric could slam Japan’s export-driven economy—but it also underscores how interconnected these central bank decisions are.

Back in the US, the crypto rally is a fascinating subplot. Bitcoin’s surge past US$86,800 and Ether’s uptick reflect not just Fed-driven liquidity but a broader shift in investor psychology. The Pectra upgrade could be a game-changer for Ethereum, making it more competitive with newer blockchains, though its lack of an immediate trigger suggests this is more sentiment-driven than fundamentals-based for now.

In sum, the FOMC’s moves have lit a spark under global risk sentiment, with US equities, Treasuries, and cryptocurrencies all riding the wave of easier financial conditions.

The Fed’s cautious optimism, paired with its QT slowdown, has given markets room to breathe, even as it braces for the unknown of Trump’s policy fallout. Asia’s mixed response and the BOJ’s conservatism highlight the uneven global picture, but for now, the US is setting the tone.

Whether this rally has staying power will hinge on how those uncertainties play out—and whether the Fed’s wait-and-see approach holds up under pressure. For investors, it’s a moment to savor the upside while keeping an eye on the horizon.

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Image credit: DALL-E

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