Two thousand and twenty-one has been a terrifying year for the COVID-19-affected — both businesses and individuals. However, we must admit that the year also served as one of the most extraordinary periods for Southeast Asia. The year witnessed the birth of several unicorns and a flurry of exits. While patience and perseverance played a crucial role in helping tech companies scale heights, various government policies and initiatives also made things easy for them. These policies in turn are giving a fillip to an already burgeoning startup ecosystem.

If you want to catch up with what is happening on the ground, these policies and initiatives should be on your radar as they would immensely impact the local and regional ecosystems in future.

Singapore

• Listing framework for Special purpose acquisition companies (SPACs)

On September 2, 2021, the Singapore Exchange (SGX) released new listing rules for SPACs on its Mainboard, marking it the first Asian bourse to approve that since the SPAC craze began last year.

As SPAC is a publicly listed “blank cheque” corporation founded to merge with or acquire private firms, SGX aims to produce strong target firms listed on the bourse. 

The SPAC framework will provide companies, including startups looking for an IPO, with an alternative funding option while securing greater certainty on price and execution. This also assists investors with more choices and opportunities for investments and exits. 

Under the SPAC framework, some significant criteria included in an SGX listing are:

• The minimum market capitalisation of S$150 million (~US$109.5 million).
• De-SPAC must occur within 24 months of IPO with an extension of up to 12 months subject to fulfilment of prescribed conditions.
• Sponsors must subscribe to at least 2.5 per cent to 3.5 per cent of the IPO shares/units/warrants depending on the market capitalisation of the SPAC.
• Sponsor’s promote a limit of up to 20 per cent of issued shares at IPO.

• Funding to boost IPOs

The Singapore government has unveiled a US$1.1 billion (S$1.5 billion) fund as part of a package to attract listings to the city-state’s market. The goal is to boost its exposure to the region’s burgeoning IT industry. 

In this plan, the state-owned Temasek has co-invested to provide late-stage private financing and investment for IPOs on the Singapore Exchange. The financial regulator, the Monetary Authority of Singapore (MAS), will also increase its grants to help companies defray the cost of listing.

Also read: Startup IPOs in 2021 are encouraging founders& investors’ interests in Asia

• First crypto service license

In August, the MAS preliminarily granted a Singapore license to the Australian cryptocurrency exchange Independent Reserve, which has been operating in Singapore since 2019. Once the license is fully approved, it will be one of the first regulated digital payment token services providers under Singapore’s Payment Services Act, which came into force in January 2020.

Later in September, local fintech Fomo Pay obtained licenses from the MAS to operate three new regulated activities, including facilitating transactions with digital payment tokens such as cryptocurrencies and the central bank digital currency (CBDC).

According to the MAS, while a significant number of applicants failed to meet its standards in terms of money laundering, terrorism financing and technology risk controls, it had received over 480 crypto-related license applications by the end of July.

This heralds a new era of regulated cryptocurrency adoption in the region as companies can “move out of the grey area” to operate. However, Singapore’s regulations have long been perceived as crypto-friendly for investors and entrepreneurs.

 

Indonesia

• New Investment List

The New Investment List, a key implementing regulation for Indonesia’s Law No. 11 of 2020 regarding Job Creation (the Omnibus Law), was issued in March 2021, easing foreign investment restrictions for firms across the country. 

The previous foreign ownership restriction of 67 per cent was eliminated for wholesale distribution and telecommunications, media, and technology (TMT) firms.

Under the rule, foreign investments in local digital startups in special economic zones (SEZ) are exempted from the minimum investment threshold of IDR10 billion (US$693,550).

All business lines not included in the law or the New Investment List are also open for any investment.

However, the new rules require careful application according to sector-specific legislation, especially in the broader law reforms introduced by the Omnibus Law.

• Merah Putih Fund

In December, Indonesian President Joko Widodo, popularly known as Jokowi, announced the launch of the Merah Putih Fund, targeting soon-to-be unicorns (or soonicorns) with predetermined criteria.

According to his announcement, to be eligible for the funding, startups must be founded by Indonesian nationals, operate in the homeland, have plans to go public domestically, pay taxes, and have a proven track record of fundraising with a valuation of above US$200 million.

Merah Putih Fund is backed by state-owned enterprises (SOEs) and slated to raise around US$300 (IDR 4.26 trillion) in H1 2022. Some of its initial investors are Mandiri Capital, BRI Ventures, MDI Ventures, and Telkom Mitra Inovasi. 

Also read: The 27 Indonesian startups that have taken the ecosystem to next level this year 

Vietnam

The Vietnamese government introduced several initiatives to support the local startup community in recent years. These included the legal framework for VC funds under Decree No.38/2018/ND-CP, which opens up capital channels into early-stage startups.

Vietnam National Innovation Center (NIC) was also established in 2019 to promote technological transfer, R&D, and commercialisation for SMEs and startups in a favourable regulatory environment. 

For the last five years, the National Program 844, or the Initiative for Startup Ecosystem in Vietnam (ISEV), has constantly supported the startup ecosystem by establishing and improving the legal framework and providing grants for activities spanning startup incubation, acceleration, market development, networking and/or communication. 

• National Strategy on the Fourth Industrial Revolution towards 2030

The Prime Minister’s “National Strategy on the Fourth Industrial Revolution towards 2030” was adopted in January 2021 with a variety of objectives, including making the digital economy accounted for about 30 per cent of the country’s GDP, universalising the 5G mobile network services, and completing the construction of the digital government.

For startups, the strategy maps out the needed undertakings of ministries and ministry-level agencies, including:

• Apply a regulatory sandbox for new business lines to create a legal framework for innovative products and services;
• Review and improve regulations towards encouraging domestic digital technology enterprises to invest in development and research to master the core technologies to participate in the Fourth Industrial Revolution actively;
• Review and amend regulations for innovative startup investment towards facilitating capital contribution, share purchase, merger and acquisition of technology enterprises;
• Renovate and strengthen universal education to increase practical activities, particularly in science, technology, engineering, and mathematics (STEM). Internship programmes in innovation support centres and startups are encouraged;
• Invest, research, and develop several prioritised technologies to actively participate in the Fourth Industrial Revolution, such as robot technology, advanced materials, renewable energy, artificial intelligence, healthcare technology, IoT, big data, and blockchain.

This follows the previous Prime Minister’s decision dated June 3, 2020, approving “The national digital transformation programme to 2025, with a vision towards the year 2030“. To set the foundation for the digital transformation, the government will give strong incentives and support for startup development and encourage large and traditional enterprises to apply these technologies in manufacturing and commercial activities. 

In addition, the country will focus on developing four types of digital technology enterprise models, including startups applying digital technology in the development of new socio-economic products and services and startups innovative in terms of digital technology.

• Decree 31/2021/ND-CP on the elaboration of some articles of the Law on Investment 

Approved in March 2021, the Decree provides details on which objects are eligible for investment incentives such as lower rate of corporate income tax, exemption or reduction of land rents, land levy, etc.

The beneficiaries include startup projects (with predetermined criteria specified in the Decree), the National Innovation Centre (NIC) established under the Prime Minister’s decision, and innovation centres established by agencies, organisations and individuals to assist startup ecosystem and R&D activities in the centres.

Also read: The 27 Vietnam startups that have grabbed our attention this year 

Malaysia

• Malaysia Digital Economy Blueprint (MyDIGITAL)

Launched in February, The Malaysia Digital Economy Blueprint (MyDIGITAL) aims to transform Malaysia into a digitally-driven, high-income nation and a regional leader in the digital economy until 2030.

As stated in the Blueprint, the government set out several targets, including driving 875,000 MSMEs to migrate to e-commerce, onboard two unicorns, and catalysing the growth of 5,000 startups in the following five years.

These initiatives will serve as a springboard for attracting RM70 billion (~US$16.5 billion) in digital investments from inside and outside of Malaysia. 

• Malaysia Startup Ecosystem Roadmap

Launched by Malaysia’s Ministry of Science, Technology and Innovation (Mosti), the Malaysia Startup Ecosystem Roadmap (SUPER) 2021-2030 aims to create 5,000 startups and achieve five unicorn-status companies by 2025, as well as nurture the country into one of the world’s top 20 startup ecosystems by 2030.

Considering feedback from more than 300 ecosystem stakeholders, SUPER identifies 16 interventions under five Ecosystem Drivers. It aims to increase Malaysia’s gross domestic product (GDP) and is expected to contribute to high-value job creation and expand deeptech investments by 2030.

As a part of the plan, a digital information resource portal, dubbed MYStartup, will be created to provide comprehensive facilitation services for startup ecosystem networks, helping ecosystem players navigate the startup ecosystem and drive local innovation. In its first year, the platform is expected to benefit more than 1,000 startup ecosystem stakeholders through the listed initiatives and programmes such as funding, bootcamp programmes, accelerator programmes, hackathons, coaching, and training courses.

• MaGICARE

MaGICARE is a compilation of initiatives in collaborating with Malaysian ministries and agencies to support startups impacted by the Covid-19 pandemic. It was launched by the government-funded Malaysian Global Innovation and Creativity Centre (MaGIC) in July.

The initiative aims to provide entrepreneurs with resources, rejuvenation, and recovery aid, which can apply until December 2021. It offers a 50 per cent subsidy for one-on-one counselling sessions for ten persons per month. 

On the MaGICARE website, there is a list of financial aid, grant, financing programmes, and humanitarian help providers for startups. 

Also read: 25 notable startups in Malaysia that have taken off in 2021

Thailand 

• SME-PO scheme 

Thailand’s Securities and Exchange Commission (SEC) announced a prospective new scheme in September that would allow SMEs and startups in Thailand to raise financing through public offerings. The SEC is scheduled to issue regulations to implement this new scheme in the first quarter of 2022. 

According to SEC’s rules, SMEs and startups in Thailand can raise funds via private investments or crowdfunding. The new scheme can raise capital on a larger scale through a new sort of IPO — called SME-PO.

Risk-tolerant and well-capitalised investors such as institutional investors, private equity or venture capital firms, angel investors, or SMEs’ directors, employees, or affiliates, can join the round.

SMEs and startups that want to pursue an SME-PO under the new SEC scheme must be structured as public companies with investor protection mechanisms in compliance with the Public Company Act, B.E. 2535. (1992). However, the SEC may also relax certain requirements of filing for approval, the appointment of an independent financial advisor, and fees for SME-POs. 

For example, an information-based approach will be applied instead of the normal approval process for public offerings, though further details have yet been revealed.

SEC also intends to create the “SME Board,” a secondary market for trading SMEs’ equities.

Also read: Exit Strategies: Ways to get your money back besides IPOs and M&A

• BOI’s Investment Acceleration Measures 2021

In a bid to accelerate investments in large-scale high-tech projects, Thailand’s Board of Investment (BOI) has introduced the Investment Acceleration Measures 2021. Accordingly, investments in specific target sectors with a realised investment of at least THB 1 Billion (~US$ 30 million) within 12 months from the date on which the BOI promotion certificate is issued would be entitled to an additional 50 per cent corporate income tax (CIT) deduction for five years. This is in addition to the standard CIT exemption period of five to eight years which is generally granted by the BOI.

Furthermore, BOI has offered to grant a CIT exemption for 50 per cent of the investment value for three years for existing businesses in select industries, such as software integration, AI, machine learning, and big data analytics. Qualified companies may apply for this investment promotion scheme until the last working day of 2022. 

 

Cambodia

• Cambodia Digital Economy and Society Policy Framework 2021-2035

The Cambodia Digital Economy and Society Policy Framework 2021-2035 promotes the digital adoption and transformation in all social actors, including states, citizens, and businesses, to foster economic growth and improve social welfare in the “new normal”. It sets out a long-term vision for building Cambodia into a digital economy.

In this framework, the Royal Government promotes digital business in three areas — promoting the digital transformation of enterprises, creating the entrepreneurial and startup ecosystems, and enhancing linkage to regional and global value chains in the digital sector.

The framework also establishes an institutional framework and coordination mechanism for monitoring and evaluating the policy framework implementation.

• Startup Cambodia National Programme

In December, the Ministry of Economy and Finance launched the “Startup Cambodia National Programme”, aiming to enhance the entrepreneurial environment through digital platforms.

As a part of the programme, the platform (startupcambodia.gov.kh.), co-managed by Techo Startup Centre and Khmer Enterprise, will engage stakeholders in incubating startups by providing mutual support through co-creation mechanisms.

The platform is also set to be used for cultural exchange initiatives and startup ecosystem assessments and support the government in making critical intervention policies to navigate the sector through digital transformation and modernisation processes.

 

The Philippines

The Philippine government has constantly provided initiatives to support its startup community, including the Philippine roadmap for digital startups in 2015, the Kapatid Mentor Me Programme and QBO Innovation Hub in 2016, and the Startup Research Grant Programme in 2017.

• Innovative Startup Act

In March this year, the Philippines’ Department of Information and Communications Technology (DICT), Department of Science and Technology (DOST), and Department of Trade and Industry (DTI) officially signed a joint administrative order (JAO) to establish a steering committee to implement the Innovative Startup Act and its Implementing Rules and Regulations (IRR).

The Innovative Startup Act (RA 11337), which was signed into law in 2019, provides the startup ecosystem with benefits and initiatives including the provision of startup visas, expedited processes, establishment of the Startup Venture Fund, Grants-In-Aid, the crafting of the Startup Ecosystem Development Program, and the establishment of Startup Ecozones, among others.

Also read: Why the Philippines is set to become the crypto capital in Southeast Asia

 

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OnMic, a voice-chatting and streaming platform targeting the young population in Vietnam, has secured an undisclosed amount of seed funding from Vietnam-focused VC firm Touchstone Partners.

OnMic was established in June 2021 by Lam Kim (CTO), Khanh Nguyen (CEO), and Trung Nguyen (CGO). It is an audio content platform that provides voice-streaming chat rooms featuring no visuals and only minimal text.

The app also allows live interaction between speakers and audiences to discuss topics spanning spirituality, travel, job counselling, financial advice, and dating. 

A Clubhouse-like app, OnMic builds a unique community bonding experience that does not rely on celebrities. “Rather, it is through the very arts of sharing authentically the ups and downs of life, love, careers and struggles, especially throughout the pandemic among Gen-Z in Vietnam,” the firm said in a statement.

Solely concentrating on community-specific audio content, the startup claims to have accumulated over 11 million live minutes and over 20,000 programmes since its inception.

Also read: The news wars: Will tech giants soon be coughing up big bucks for media content?

It boasts a 100 per cent organic growth driven by micro-KOLs and their networks.

“OnMic has seen a new generation of audio-based content creators since its launch. So it initiated creator-first programmes to help them flourish simply on the merit and quality of their ideas, without any need for visuals or content editing skills,” said CEO Nguyen.

With a population of more than 90 million, coupled with the smartphone penetration rate being in the top 10 globally, Vietnam is one of the fastest-growing markets for digital mobile-first content. Other local players, such as Vietcetera and Fonos, are also developing audio content for the young generation.

Based on eMarketer 2019 data on digital audio listenership and voice assistant usage, the digital audio listener base exceeds 300 million across countries, including Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. As a result, the audio content market in the region has significantly picked up pace in recent years. Not only prominent players such as Spotify and Apple Podcasts, but even startups like Clubhouse, are giving local businesses a run for their money.  

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The coronavirus pandemic has changed the entire global economy. As a result, many businesses closed down and several industries faced downturns, affecting populations around the world. In the Philippines, the unemployment rate rose to 8.9 per cent in September 2021 –the highest recorded data for 2021. Similar trends have been faced by countless nations across the globe.

According to the International Labor Organization, there are over 220 million unemployed people in the world, a whopping 18 per cent increase before the pandemic. Because of this unexpected crisis, millions of people are left to explore alternative ways to replace their lost source of income. Many people find comfort in online jobs, particularly those based on digital platforms. Businesses that shifted to the digital space have found themselves thriving.

Besides work from home, another sector that flourished during the pandemic is the cryptocurrency space. Many businesses and individuals view cryptocurrencies, or digital assets, as a new source of revenue. This is opening up various opportunities to help them overcome tough economic challenges. However, many beginners, especially those without technical knowledge, find it challenging to start. How can individuals and enterprises earn passive income or safely invest in digital assets?

Making money work for you with passive earnings

When it comes to cryptocurrency, trading is a ubiquitous way of earning money. However, it requires users to thoroughly understand the market, which beginners simply lack. Moreover, while digital assets can offer high returns, numerous technical barriers limit new investors from easing in. Fortunately, simplified crypto apps make it easy for beginners to start earning crypto, similar to starting with popular savings apps.

For example, digital wealth management platforms such as YIELD App allows beginners, especially those with limited cryptocurrency knowledge, to earn passive income. YIELD App enables users worldwide to start earning returns from cryptocurrency and DeFi products without going through a lengthy, tedious, and often expensive learning curve. Users can generate passive returns with stablecoins, which means there is no risk of volatility.

Also Read: You’re not really diversifying your investments by buying altcoins

“Dealing with complicated fee structures in crypto and learning about the hundreds of assets to choose from are typically overwhelming for mainstream users. Naturally, there is growing demand for apps that can reduce these complexities, while at the same time allowing end-users to gain maximum exposure to the benefits of crypto,” explains Lucas Kiely, Chief Investment Officer of YIELD App.

Like individuals, businesses and enterprises need various sources of revenue to stay afloat in today’s economic situation. “Digital assets are now a popular alternative investment, allowing all types of businesses to diversify their assets, protecting their wealth and generating returns on their treasuries, especially during economic downturns,” says Kiely.

Security is vital for strategic investments in digital assets

Economic cycles are normal phenomena that have occurred time and time again. Companies use various strategies to hedge against inflation and market cycles. However, the pandemic has caused steep hikes in the annual inflation rate of national currencies.

In the US for example, the inflation rate accelerated to 6.8 per cent in November 2021, the highest since June 1982. This means that companies with significant treasury assets in USD, in simplistic terms, will lose their purchasing power if they don’t hedge into other assets. Generating 10 per cent APY on stablecoins for instance can already offset this inflation and generate net profit.

For businesses dealing with large sums of money seeking to invest in stablecoins, qualified custodians help serve the needs of professional digital asset security. The concept of physical stacks of cash and banks do not apply to digital assets. Instead, highly advanced digital vaults are required to adequately protect them. Many companies understand the importance of diversifying their corporate assets. However, businesses that are new to the crypto space do not have sufficient know-how for keeping their digital assets safe.

Also Read: Bitcoin and Ethereum simplified for a five-year-old

Institutional grade custodians such as Onchain Custodian helps businesses to safely segway into cryptocurrency management. The company offers a global, standardised, resilient, insured, and compliant custody service for the safekeeping of institutional digital asset investments with incomparable user experience.

As the digital asset industry continues with rapid technological development, further interest from global institutions can be expected. A key challenge to overcome will be keeping up with this swiftly adapting industry to better serve enterprise needs, without sacrificing on security.

Opening up a digital world of opportunities

No one can predict the future, but everyone can prepare and find new ways to thrive in today’s digitally-oriented world. Professional companies including the likes of YIELD App and Onchain Custodian are providing direct gateways into digital asset wealth management and custody solutions. Now millions of individuals, as well as businesses, are better empowered to safely and easily participate in these opportunities.

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This content was first published by The Human & Machine.

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Renowned Silicon Valley veteran Tim Draper has invested an undisclosed amount in TNL Media Group, an independent multi-language media and data platform in Taiwan.

Draper invested through his fund Draper Associates VI.

TNL Media is the VC fund’s first direct investment in Taiwan. It comes a year after it closed a financing round with notable international investors, including New York-based VC firm Palm Drive and Guitar Hero and XRM Media co-founder Kai Huang.

The group will use the money to grow its media presence, offer new verticals throughout Asia, and invest in its data analytic capabilities. It also aims to unify the data across all media brands and create synergies across content, adtech and data analytics products.

Additionally, TNL Media announced the launch of its seventh media brand, Ohsowow, which will mainly focus on Korean entertainment, culture, and lifestyle content. Ohsowow aims to be the go-to media platform within the international Chinese-language market for Korean entertainment and lifestyle reporting.

Also Read: YouTube, Twitch co-founders invest in Taiwanese news site The News Lens

TNL Media provides media, digital advertising, and data analytics platforms for the Asian market. It was launched in Mandarin and English to provide inclusive, in-depth, diverse, and highly influential content for digital readers. The group has since expanded and acquired a mobile ad network, big data research company, and launched a data analytics platform.

As a result, the group can effectively grasp user information through zero-party, first-party, third-party databases, AI analysis, Martech, and other cross-domain core products.

The group consists of seven content brands and ten subsidiaries, with over 230 staff members in Taipei, Hong Kong, and Japan. Its other media brands are The News Lens, INSIDE, Sports Vision, Cool3c, Agent Movie,  every little d.

TNL now has a staff of over 230 and plans to continue expanding its readership size, international presence, strategic data partnerships and new technological capabilities.

Other high-profile investors include North Base Media, an original seed investor in The News Lens, YouTube co-founder Steve Chen, and Twitch co-founder Kevin Lin.

TNL Media will also continue to invest in bolstering its holistic data ecosystem — ranging from our zero party data products via (permission-based, PDPA compliant) mobile passive tracking panel – Engagement Lab, research panel – ShareParty, first-party data from TNLs’ media brands, and integration with second and third-party data via MarTech/AI.

Exclusive: Ex-CTO drags Society Pass into court for “breaching employment contract”, seeks over US$1.3M in damages

“With China’s President abandoning the free markets and business, we are seeing an influx of great entrepreneurs to Taiwan and other parts of Southeast Asia,” said Draper, who has earlier invested in Skype, Tesla and SpaceX.

“An honest, fair media site, combined with data analytics and artificial intelligence, could be the next development in media. Additionally, the demographics of the 18 million monthly uniques in TNL Media is the sweet spot for early-stage entrepreneurs. We expect TNL to grow rapidly,” he added.

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VinaCapital Ventures, the VC arm of VinaCapital Group, has announced an investment in Hub Global JSC, an accelerator for startups creating blockchain solutions across various verticals.

With this, VinaCapital Ventures will become Hub Global’s largest external shareholder. It will now get a seat on the firm’s board of directors.

Also read: The art of blockchain: What is the NFT craze all about?

Hub Global JSC was founded in 2021 by Linh Han (CEO at local accelerator-cum-VC fund VSV Capital), Bryan Pelz (former co-founder and current board member of local tech unicorn VNG), and Hai Bui (former head of business technology transformation at Vietnam’s leading commercial bank Techcombank and Singapore’s blockchain-based liquidity hub Kyber Network).

Hub Global focuses on three key areas: incubator/accelerator, blockchain community and sandbox, and blockchain investment fund. 

The newly established blockchain fund is backed by ten LPs and several entrepreneurs. It claims to record a 5x profit from the initial investments after three months of operation.

“It’s clear that blockchain has enormous potential far beyond cryptocurrency, and Vietnamese startups are already making inroads in developing blockchain solutions in several applications,” said Trung D. Hoang, partner at VinaCapital Ventures.

The Southeast Asian region has onboarded a significant number of blockchain-focused funds this year, including Singapore’s US$75 million fund, NextTech’s US$50 million fund, True Global Ventures’s US$100 million fund, LuneX Ventures, and Zilliqa’s US$5 million fund, to name a few.

This aligns with the global trend; in the first nine months of 2021, global blockchain financing soared to reach US$15 billion, an increase of 384 per cent from US$3.1 billion in 2020, as per a CB Insights report.

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MDI Ventures, a corporate VC firm backed by Telkom Indonesia, has announced the launch of an angel investment network. 

Called eMerge, the network aims to educate and attract high-net-worth individuals to invest in Indonesia’s early-stage tech startups. It allows angel investors to invest via a syndication model, under a special purpose vehicle (SPV), or co-invest with MDI and other pre-seed and seed-stage VCs.

The network has announced its first investment in GOX, an Indonesian gaming live streaming platform and community.

GOX taps into an industry plagued with limited monetisation features and the inefficiency of audience-streamer interactions.

“Comparing Indonesia’s streaming industry to more mature markets like China and the United States, which have 4 million and 3 million streamers respectively, the Indonesian market is heavily underpenetrated,” said Jack Lontoh, a co-founder of GOX. 

GOX will utilise the new funds to improve the user experience, hence, boost its long-term revenue growth. The firm plans to work on new product development and grow its network of streamers. 

Further details of the deals are not disclosed.

Also read: The pros and cons of signing on an angel investor for your startup

As per a press statement, more than 60 angel investors have joined eMerge’s member network. Beyond simply writing cheques, eMerge claims that its members can help portfolio companies grow and succeed with angel backgrounds ranging from startup founders to conglomerate owners. 

MDI Ventures has shared more than 30 deals with the network. The firm is on track to ink several deals with participation from angel investors and other venture capital firms. 

“The creation of eMerge has completed the MDI investment thesis as an end-to-end investment ecosystem for startups,” said Sarah Usman, partner of eMerge.

Launched in 2016, MDI Ventures is a CVC with US$830 million in assets under management. It provides startups with a range of opportunities to get plugged into Telkom Group’s businesses in telecoms, multimedia, property, financial services, and a network of other state-owned enterprises.

In August, Arise, a joint venture by MDI Ventures and Finch Capital, has announced the first close of its US$40-million debut fund, aiming to invest in 25 tech startups in the post-seed to pre-Series A stages in Southeast Asia for the next three years.

Earlier this month, blockchain and cryptocurrency infrastructure provider Binance also established a joint venture with a consortium of investors led by MDI Ventures to develop a new digital asset exchange in Indonesia.

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Indonesian agritech startup Agriaku has raised an undisclosed seed funding round led by Arise, a fund that was the result of a collaboration between MDI Ventures and Finch Capital. Wright Partners and MDI Ventures also participated in the funding round.

The startup plans to use the new funding to increase the number of farmers on board their platform as part of the effort to penetrate Indonesia’s agriculture market.

Founded in May by Irvan Kolonas (a serial agriculture entrepreneur and CEO at Vasham, a company that builds financial and operational solutions for agriculture industry players) and Danny Handoko (Ex-CEO and Co-Founder of hospitality startup Airy Indonesia), AgriAku aims to solve problems that exist in the agriculture value chain from principals, supply chain, retailers, and farmers.

In a press statement, the startup said that despite agriculture being the largest GDP contributor in Indonesia, its upstream market is fragmented and sufficient. “The problems primarily revolve around the multi-layered nature of the supply chain, causing a lack of data insights for decision-making and limited knowledge and financing capabilities for farmers,” it wrote.

Agriaku builds a marketplace that connects agricultural supply stores with manufacturers or first-level distributors. The company said that this model allows farmers to procure a full catalogue of SKUs of agri-inputs with ease and at a nominally competitive price point.

Also Read: The 27 Indonesian startups that have taken the ecosystem to next level this year

Moving forward, Agriaku said it will continue to expand its offerings to become a one-stop solution for agricultural services, catering to the needs of the different stakeholders in the agricultural industry.

The company said that it is “amplifying the playbook of” DeHaat, an India-based agritech startup that has recently scored a US$115 million Series D funding round from Lightrock, Sequoia Capital India, and Temasek Holdings, among others.

“We believe that our approach of empowering local toko tani (agricultural supply shop) as our last mile agents to distribute a full stack of product and services for smallholder farmers in Indonesia has the potential to disrupt an industry that so far has been resistant to change,” said Irvan Kolonas, President and Co-Founder of Agriaku.

Since its inception, Agriaku said that it has empowered more than 6,000 small agribusinesses and thousands of smallholders farmers in Indonesia.

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M_Service JSC, the owner of the Vietnamese payment app MoMo, has scored US$200 million Series E funding led by Mizuho, a global bank based in Japan. 

Mizuho invested US$170 million in return for a 7.5 per cent stake, according to a Nikkei Asia report. APAC-focused Ward Ferry Management and existing investors Goodwater Capital (a consumer tech-focused venture capital firm) and Kora Management (a global investment firm targeting emerging markets) also contributed.

As per a Bloomberg report, this round brings the fintech firm’s valuation to over US$2 billion, joining the likes of local tech firms VNPay, VNG, and Sky Mavis (the owner of Axie Infinity) in the coveted unicorn club. 

In January, MoMo announced the close of an undisclosed Series D round (Bloomberg revealed that it was more than US$100 million), co-led by Warburg Princus, which had led MoMo’s Series C round in 2019, and Goodwater Capital.

MoMo will channel the fresh funds to increase the reach of its offerings to 31 million customers, starting with a bill payment service. It also intends to expand in rural areas in Vietnam and support digital transformations in local MSME merchants. 

A portion of the capital will be used to bolster MoMo’s tech investments as well as mergers and acquisitions in future. 

In June, MoMo acquired local startup Pique, which uses AI to turn visitors into customers. It plans to capitalise on Pique’s 25 million user database to improve its product offerings further.

Also read: The 27 Vietnam startups that have grabbed our attention this year

Founded in 2007, Momo offers mobile payments and e-wallet services for iOS and Android devices. Its range of products include cash transfers, mobile phone recharges, personal loans and services, such as software license and online game cards.

The e-wallet has been evolving into a super-app marketplace that includes insurance, credit products, and digital vouchers, among other things. It also plans to launch investment products next year.

MoMo claims to have a partnership with over 50 banks and financial institutions. It has also partnered with 50,000 corporate brands across consumer finance, insurance, money transfers, utility payments, entertainment, e-commerce, shopping, transportation, and F&B. 

The firm claims the wallet has over 140,000 payment acceptance locations across all industry sectors. 

Vietnam’s digital payments vertical, especially contactless payments, has witnessed spectacular growth following the onslaught of COVID-19. According to a report by Statista, in 2020, Vietnam has one of the highest rates of cashless payment acceptance in Southeast Asia. 

Although cash-on-delivery has been the most popular mode of purchase in Vietnam, the trend is seeing a significant shift thanks to the pandemic-induced behavioural change. The growing e-wallet category has played a crucial role in the expansion of Vietnamese digital payments, accounting for an increasing transaction value that is expected to reach over US$48 billion by 2025.

Other major apps operating in the contactless payments space in Vietnam are VNG’s Zalo, Gojek, Payoo, Moca, and SenPay.

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International travel is making a comeback. The International Air Transport Association (IATA) is optimistic that global passenger numbers would recover to 52 per cent of pre-COVID levels by the end of this year, citing more vaccination and testing as the key drivers.

Countries in Southeast Asia, including Singapore, have reopened their borders to vaccinated travellers after more than a year of lockdowns due to COVID-19.

This poses a critical question to airport leaders: Are their facilities ready to welcome passengers back safely?

To earn back public trust and protect the wellbeing of employees and passengers alike, airports need updated facilities that provide highly connected and data-driven environments. Studies show airports are ready to do just that; airports globally spent US$3.5 billion on IT in 2020 and are projected to budget the same or more in 2021.

Singapore’s Changi Airport has tested on-arrival testing and biosafety systems to maintain the airport’s position as a safe, well-connected and trusted airport.

By integrating digital solutions, airport leaders can maximise non-aeronautical revenue opportunities, streamline the passenger experience and deliver safety and security at every touchpoint.

Airports benefit from proactive digital security solutions in several ways, apart from gaining a heightened awareness of potential threats. Solutions such as biometrics allow airports to strengthen their security processes, as well as slow the spread of viruses by minimising face-to-face human interaction between passengers and employees.

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

Proactive security can help create a more enjoyable experience for passengers by processing them more quickly and efficiently, thus giving passengers more time to shop, dine and explore the terminals.

With technologies such as advanced access control and a connected dashboard, airports can boost sustainability practices such as integrating building management systems to calibrate, optimize and forecast energy usage based on foot traffic and occupancy.

Analytics help airports prepare for the unexpected

Technological advancements in passenger screening systems are driving demand in airports across the Asia Pacific such as India and China. These include powerful body scanners, artificial intelligence (AI) and machine learning, blockchain technology, facial and biometric recognition.

Changi Airport in Singapore is tapping data analytics and the Internet of Things to gain a more accurate, real-item perspective of its operations.

Likewise, Malaysia Airports is using contactless technology to help enhance passenger safety in response to the current global pandemic.

Data is a key component of any modern airport’s operations. There will be concerns around cybersecurity, especially as the public return to air travel after a long hiatus, resulting in a large influx of passenger data.

With the right cybersecurity program, however, these vulnerabilities can be identified and eliminated. 83 per cent of airports plan to implement a significant cybersecurity program, of which cyber-analysis is a key component.

A trusted partner can work with airport leaders to identify gaps in their system and create a cybersecurity program aligned to their needs, allowing them to integrate new technologies to address the concern of a cyberattack.

Airports have been using risk algorithms to stay prepared for unexpected emergencies. Leveraging digital twin technology, airport security managers can create a live digital replica environment by applying internal and external facility data.

This enables security leaders to run highly accurate models and algorithms to account for the biggest risks facing their airports and help guide them when designing their security systems. Digital twin technology can even help airports locate the source of costly, panic-inducing false alarms.

Also read: Here are the 5 predictions for Southeast Asia’s travel industry trends post-COVID-19

Analytics can help airport leaders understand and best serve their customers. With analytics, security managers can predict and understand passenger behaviours in the airport, and pattern recognition tools can automatically recognise and flag suspicious passenger activity to security personnel before the situation becomes dangerous.

Additionally, by understanding the factors that most influence passengers’ shopping, dining and enjoyment, airports can redesign concourse layout for greater customer satisfaction and revenue generation while maintaining best-in-class security.

Integrate for streamlined emergency response

A surge in passengers can complicate airports’ emergency response processes; more passengers, unfortunately, create greater potential for accidents and violence and also amount to more individuals that require evacuation.

However, just as airports can implement proactive solutions to predict and analyze security threats, they can also install creative and integrated incident identification and response systems for comprehensive, real-time emergency response.

Whether the emergency involves fire, intrusion or simply suspicious behaviour, security systems can be automated and connected to enable a streamlined and automated response.

By integrating security solutions onto a single network, multiple systems can communicate with each other for maximum efficiency. Mass notification systems (MNS), including text alerts, digital screens and kiosks, can be integrated with alarms to deliver evacuation guidance to passengers and employees.

MNS can also instantly alert local first responders, providing them with detailed information about the situation so they can formulate a plan to best protect employees and travellers.

Also Read: Sleeping beast ready to awaken: The rush for regtech in a COVID-19 world

Surveillance cameras can also be integrated with alarms to automatically lock and unlock entrances and exits based on the response required for the incident, preventing individuals from moving towards the danger.

In an emergency situation, every second counts. Through integration, airports’ emergency response processes are streamlined and automated, removing human error as a risk factor and ensuring an orderly evacuation process that can save lives.

Data-powered security is cleared for takeoff

In the wake of the ongoing COVID-19 pandemic, passengers returning to airports in the coming months will naturally have heightened expectations for airport security and efficiency.

To assuage any concerns and earn back public trust, passengers will expect to see and experience a greater focus on their wellbeing and comfort, in addition to impenetrable security. Airports cannot afford to fall short.

By implementing the latest in advanced security solutions, airport leaders can create an enhanced environment that is data-powered and optimised for traveller wellness.

From touchless access control to digital twin analytics, airports across Southeast Asia can welcome back travellers with a safe, healthy and enjoyable passenger experience.

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By mid of 2019, economists were predicting more retrenchments and fewer job vacancies in Singapore. The city-state hardly got some time to recover from the slowing GDP growth that year when COVID-19 hit. Today, not just Singapore, but the entire world is faced with an unpredictable job market amidst global economic shutdowns due to the prolonged pandemic.  The coronavirus outbreak triggered mass layoffs in big and small companies all over the world. 

The importance of passive income has always been well known but in the past two years, it has become even more clear that we all need additional sources of income as a safety net and for emergencies. 

There are multiple ways of earning passive income but as we approach the digital decade in the 4.0 era, digital currency has started to see an increase in adoption with cryptocurrencies emerging as remarkably resilient assets during global economic meltdowns.

We spoke to Sten Ivan, head of growth at crypto interest-earning platform Hodlnaut to explore more on this. 

Earning passive income with cryptocurrency in Asia: Scope and challenges

Sten believes that with the increase in adoption of crypto-related activities evidenced by financial giants such as PayPal and Mastercard, it shows that the use of digital currencies is slowly becoming more acceptable and will soon be mainstream. Moreover, DeFi and the blockchain technology behind cryptocurrencies have an abundance of use cases besides just being a mode of payment. This means that there are tons of opportunities for growth we have yet to see in the space.

“Inflation is also a very common aspect when it comes to fiat money. But with cryptocurrency, the chances of inflation are minimal — and even none. With a fixed supply of Bitcoin in circulation, users who hold Bitcoin would not need to worry about an increase in the supply of the currency, which in turn, will not devalue the asset. All these aspects make cryptocurrency a viable choice for users to earn passive income in,” he adds.

Also read: How electric mobility startups are tackling climate change in Asia

Cryptocurrency as an ideal avenue for passive income makes even more sense for Asia where trends like a rising middle class and increasing smartphone and internet usage are driving digital trends. 

According to a study by Messari crypto researcher Mira Christanto, six out of the top ten cryptocurrency unicorns are located in Asia. Plus, around 98 per cent of ethereum-based futures and 94 per cent of bitcoin futures volumes stem from the region. 

However, there are several common fears associated with cryptocurrency that might lead to hesitation and doubt. In a survey done by Encrybit The Future of Exchange, 40 per cent of respondents considered security to be the most problematic while 33 per cent considered lack of customer support as the main challenge. Extreme price swings and market volatility are also common challenges faced by crypto traders.

Changing the crypto game for a better, brighter future

Singapore-based crypto lending platform Hodlnaut is stepping up to help provide financial services for individual investors allowing them to safely earn interest on their cryptocurrencies by lending to vetted corporate borrowers, who would otherwise struggle to access crypto loans. 

“Here at Hodlnaut, we always take a security-first approach. We have put in place various security protocols to ensure that users’ funds are safe with us. This includes a two-factor authentication procedure for users before they can deposit,” Sten shares.

To ensure that funds are kept safe, Hodlnaut does not use hot wallets, which are vulnerable to online attacks. “Instead, we use Fireblocks’ multi-party computation wallet infrastructure where each user will be assigned a unique address generated by Fireblocks. On the backend, Hodlnaut will either transfer the cryptocurrencies to our self-custodied cold wallets or lend them to vetted borrowers,” Sten adds.

Also read: How Grove HR is powering the next generation of Tech unicorns

Plus, the platform runs on a secure cloud infrastructure on Amazon Web Services (AWS), and all traffic is encrypted with SSL encryption. “We encrypt and anonymise as much data as possible on our servers. We also use industry-standard algorithms for password hashing and procedures,” shares Sten.

Furthermore, users can withdraw funds to only whitelisted addresses, preventing any potential hacks and scams. Hodlnaut also provides an optional Nexus Mutual Custody Cover. Though it is not mandatory, Hodlnaut has put in place this option to provide users with an alternative to safeguard their funds.

Hodlnaut is also certified by the Singapore Fintech Association, a credential recognised by the Monetary Authority of Singapore (MAS). Plus, it is even actively pursuing a license application with the MAS and is currently operating under an exemption. 

Maximised benefits and high-interest rates

Hodlnaut offers some of the highest interest rates of up to 12.73%. “This means that users will be able to benefit a lot more when they deposit with us since they will be able to earn higher returns,” explains Sten.

In the Encrybit survey, 37 per cent of respondents considered high trading fees to be the most problematic. Hodlnaut has recently launched a new initiative to waive off any single withdrawal fee per calendar month. As such, users no longer need to pay for the withdrawal fees so long as they withdraw only once a month. This allows them to earn maximised returns since they do not have to pay for the additional withdrawal fee. 

Hodlnaut also has a Preferred Interest Payout feature that allows users to earn in the currency of their choice. The feature allows for more flexibility over users’ crypto assets and boosts their annual percentage yield (APY) when they choose to earn in stablecoins since the current APY for stables is much higher (12.73%) compared to BTC or ETH (7.46%). 

Also read: UKISS Hugware: Singapore-designed hardware wallet securing digital assets with hassle-free recovery

Furthermore, with Hodlnaut’s Nexus Mutual Custody Cover, users are able to access custody cover easily, quickly, and conveniently. Users who purchase custody cover will have their assets protected against the following risks:

• The custodian gets hacked and the user loses more than 10% of their funds
• Withdrawals from the custodian are halted for more than 90 day

The feature covers any token or combination of tokens users have in their Hodlnaut account. In case of a claim, users will receive the equivalent of their funds in ETH or DAI up to the covered amount. 

Crypto traders can now make money on the go with Hodlnaut mobile apps

Before the launch of their iOS and Android applications, crypto traders would have to log in to Hodlnaut’s website via their computers, tablets, or smartphones. To provide users with more options and better accessibility, Hodlnaut has launched iOS and Android mobile apps making it a whole lot easier for users to access their accounts, manage their portfolios, and earn on the go. This is also in line with mobile usage trends in the region. Reports suggest that most Asian countries have already transformed themselves into mobile-first nations, with smartphone penetration outpacing traditional desktop devices. In Korea, consumers have 57 apps installed on average. Chinese users prefer apps over desktops too.

“Traders can now access features such as Token Swap and Preferred Interest Payout to help them boost their portfolios — and eventually, returns — even when they are out and about. No matter where they are, our users can now earn through our mobile app at (literally) the touch of their fingertips,” says Sten.

Start working towards achieving financial freedom with cryptocurrency today. For more information on how Hodlnaut can help you achieve this goal, visit https://www.hodlnaut.com/  and sign up here: https://app.hodlnaut.com/signup 

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This article is produced by the e27 team, sponsored by Hodlnaut

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