Taiwan’s startup ecosystem continues to expand its footprint across Southeast Asia, this time marking its first official presence in Malaysia. It is co-led by Startup Island TAIWAN, Taiwan’s national startup brand under the National Development Council (NDC), and Startup Terrace, a leading innovation hub under the Ministry of Economic Affairs.

A total of 17 outstanding startups engaged with Malaysia’s key innovation stakeholders. This includes Cradle Fund, Malaysia Digital Economy Corporation (MDEC), Petronas Innovation Garage(PING), MRANTI and SIDEC. They aim to explore collaboration in AI, Sustainability and Digital Transformation. This is while supporting Taiwanese startups in accessing broader market and investment opportunities.

This first step into Malaysia marks Startup Island TAIWAN’s continued mission to build cross-border connections in the ASEAN region. Malaysia’s strong industrial base and AI infrastructure complement Taiwan’s strengths in deep tech, AI, and digital innovation. As a result, it creates significant synergy potential between the two ecosystems.

Also read: Taiwan’s AI ecosystem shines at SuperAI 2025: From Silicon to storytelling

Outstanding startups bridging Taiwan–Malaysia innovation

• INFINITIX Inc. delivers AI infrastructure solutions with AI-Stack, boosting GPU efficiency and accelerating enterprise AI growth, attracting high profile investors interest.
• KDAN provides AI-driven workflow and data solutions with self-hosted deployment options, empowering businesses to optimize efficiency, enhance agility, and create value through digital innovation, local customer profile includes Malaysian top real-estate company.
• FunNow is GSEA’s leading lifestyle app for on-demand dining, wellness, beauty, and stay bookings, with teams operating in Malaysia, Singapore, Thailand and the Philippines. 
• Startup Terrace highlighted 3 companies:
• SOIC Marine Solutions introduces AI Sailor, an intelligent navigation system integrating environmental sensing and GPS data to help ships autonomously adjust courses and avoid risks. 
• eCloudEdge, backed by eCloudvalley, develops NeoEdge, an AIoT Edge Orchestration Platform that enables data-driven decision-making for industries such as manufacturing and energy. 
• AIRA, an AI video recognition company with over two decades of expertise, delivers real-time tracking and safety solutions for construction, factories, and retail through its airaTrack and smart surveillance technologies.

Also read: Why Taiwan’s tech ecosystem is ASEAN’s next big growth driver

Expanding Taiwan’s ASEAN footprint

In recent years, Startup Island TAIWAN has actively deepened its presence across Southeast Asia. This spans from Singapore and Vietnam to Thailand, the Philippines, and Indonesia. This drives stronger innovation linkages across the region. The latest visit to Malaysia further underscores Taiwan’s growing role as a trusted innovation partner in Asia.

Through these cross-border initiatives, Startup Island TAIWAN continues to empower startups to build local connections, attract investors, and accelerate regional expansion. At the same time, it welcomes global talents and stakeholders seeking opportunities in capital collaboration, market soft-landing, and strategic partnerships. This reinforces Taiwan’s position as a vibrant and reliable hub for innovation in Asia.

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Early July, I had a quiet Monday evening run with a friend who leads a 20-person startup. From the outside, it looked like everything was going well — press features, public praise, and the kind of traction that many founders work years to build.

But as we laced up and jogged beneath Singapore’s skyline, he confided that he was considering a painful team restructure. Not because of performance issues or financial strain, but because of something deeper: a growing misalignment between the company’s current operations and his personal values.

This conversation stayed with me.

We often talk about startups in terms of metrics and milestones: product-market fit, burn rate, scaling strategies, and funding rounds. But rarely do we ask the more personal questions:

• What if the company I’m building no longer reflects who I am?
• What if our success comes at a cost I’m no longer willing to pay?
• What happens when the direction we’re heading no longer aligns with the deeper mission that inspired it in the first place?

These aren’t hypothetical questions. They are the quiet dilemmas many founders face but rarely voice. And they sit at the heart of a simple but powerful framework I often return to when coaching founders: Head, Heart, and Hand.

The head: Vision, strategy, and hard truths

The “head” is where most startups begin. It’s the space of logic, strategy, and planning. It’s about solving real problems, mapping growth trajectories, testing business models, and making hard calls.

But the head can’t do it alone.

One founder I spoke with built a platform designed to support individuals facing mental health challenges, especially those with limited access to care. The idea was deeply personal and ethically driven. In the early days, the team leaned heavily on trained volunteers, offering the service free during the soft launch. But as the platform scaled, cracks emerged. Volunteer capacity and training quality became issues. Bookings remained low, not because demand was lacking, but because people were still reluctant to reach out.

The mission was heartfelt. But the infrastructure — the “head” work — needed to catch up. And in this case, the founder made the tough call to pause and rebuild, knowing that goodwill alone doesn’t guarantee sustainable impact.

Also Read: Running on empty: What happens when AI models run out of data?

The heart: Purpose, alignment, and ethical tension

The “heart” is what fuels the late nights and early mornings. It’s the passion, the belief in what you’re building, and the drive to make a difference beyond profits.

But what happens when the heart starts to pull in a different direction?

My friend in tourism tech realised his platform, while driving impressive growth, could unintentionally contribute to overtourism and environmental strain in already fragile destinations. The success was real. But the unintended impact was equally real. He and his co-founders faced a crossroads: continue with the current trajectory or have the difficult conversations about pivoting toward more sustainable, responsible models.

Everything was working — except the heart.

And sometimes, that’s enough to justify change.

The hand: Action, execution, and showing up

Then there’s the “hand.” The doing. The building. The showing up when no one’s watching. Especially for young founders, this can be the hardest part, figuring out what to do next when both the head and heart are buzzing with ideas.

A mentee of mine, fresh out of national service and heading into his first year at NTU, is already contemplating his next startup. He’s previously worked in two early-stage companies and is passionate about robotics and AI. The heart and head are aligned, but the question now is about action. Should he launch something new? Intern? Explore the industry? How do you choose where to put your hands, especially when opportunities are everywhere?

This isn’t a bad problem to have. But it underscores a truth many founders forget: strategy and passion mean little without consistent, focused execution. The hand is where dreams become prototypes, where decks become MVPs, and where pivots become reality.

When one is missing

Each part — head, heart, and hand — plays a different but essential role in the startup journey. And when one is missing, things wobble.

• A great idea (head) with no execution (hand) stays a dream.
• A well-built product with no purpose (heart) risks becoming hollow.
• A passionate mission with no strategy (head) struggles to survive.

Startups aren’t just businesses. They are living systems, shaped by the founders’ inner alignment as much as by market forces. In this sense, building a startup isn’t just about what you’re building — it’s about how and why you’re building it. And who you’re becoming in the process.

Also Read: The Founder’s blind spot: Lessons in money management

The inner startup

There’s a beautiful parallel here. Building a startup is much like growing as a person. There are stages of self-awareness, misalignment, recalibration, and growth. The glitches you encounter — internally or externally — aren’t signs of failure. They’re invitations to pause and reflect. To realign your head, heart, and hand.

So the next time you find yourself wondering whether to pivot, double down, or take a break, don’t just look at the numbers. Ask yourself:

• Does this still make sense?
• Does this still feel right?
• Am I still willing to show up and build, even on the hard days?

These questions won’t show up in your pitch deck. But they just might be the most important ones you ask.

Because in the end, the startups that endure — and the founders who thrive — are the ones who find a way to align their strategy, their spirit, and their effort.

The head, the heart, and the hand — working together, not perfectly, but in honest, evolving harmony.

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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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The travel and hospitality industry stands at a defining crossroads. Artificial Intelligence is no longer an emerging concept sitting at the edge of operations – it is becoming the backbone of transformation across airlines, hotels and the wider ecosystem of global travel. The growth has been rapid. In fact, the AI in the travel and tourism market has been estimated at US$2.95 billion in 2024 and projected to grow to US$13.38 billion by 2030 at a remarkable Compound Annual Growth Rate of 28.7 per cent.

The pace of AI advancement is transforming the very foundations of economics. Agentic AI—with its ability to autonomously perceive, decide, and act—has ushered in the dawn of the Agent Economy. This paradigm is reshaping market structures by positioning autonomous AI agents as economic actors, capable of creating, exchanging, and scaling value at unprecedented speed and magnitude, with the potential to unlock trillions in impact.

In this light, AI agents, together with data, can be seen as the fifth factor of production—extending the classical model beyond land, labour, capital, and entrepreneurship. Their potential to redefine customer experiences, optimise operations, and enable entirely new business models is immense. Yet, as with every technological revolution, these opportunities come with challenges that demand thoughtful navigation.

The conversation about AI in travel and hospitality—an inherently labour-intensive industry—is often framed around a single, anxiety-laden question: will it replace people? But history shows us that innovation rarely destroys without creating more in its place. The challenge is not simply about guarding against disruption — it is about harnessing AI to unlock opportunities whilst ensuring that progress remains human-centred.

A new era of hyper-personalisation and intelligent operations

AI is already transforming the way travellers plan, book and experience journeys. This is not merely about faster chatbots or smarter booking engines, it marks the dawn of hyper-personalisation.

In a recent survey of 1,000 travellers, more than one in five (22.8 per cent) said they have used AI to plan or assist with their travel – a surge of over 40 per cent since September 2024. This rapid uptick in adoption underlines how quickly AI-powered tools are moving from novelty to necessity in the travel experience.

AI-powered travel assistants now act as digital concierges, analysing over dozens of signals from past travel behaviour to real-time weather and even local events, to curate recommendations that feel almost intuitive. Imagine a system suggesting a secluded beach escape because it knows you prefer tranquillity over bustle or tailoring a city itinerary for cultural immersion based on subtle signals in your past choices.

Also Read: How to not let the bots ruin your travel plans

Airlines and hotels are also using AI to revolutionise operations. Dynamic pricing algorithms adjust fares and room rates in real time, responding to demand shifts and competitor moves. Predictive maintenance powered by AI saves airlines hundreds of thousands of pounds per hub annually, whilst airports are deploying AI to manage passenger flows and reduce bottlenecks.

The impact extends to safety and sustainability too. Biometric security systems at airports can verify a passenger’s identity in seconds, reducing queues whilst enhancing security. AI-driven flight route optimisation helps airlines cut fuel use and emissions, whilst hotels are using smart systems to manage energy and water consumption more efficiently.

Navigating tension points

Despite these advances, the industry cannot ignore the tensions AI introduces workforce displacement looms large not only in the aerospace industry, but across all sectors. This has already sparked debates around Single Pilot Operations and resistance to AI-driven rostering of cabin crew.

There are also issues of trust. Airlines have faced legal liability for incorrect information provided by AI chatbots. Missteps like this erode confidence and underline the need for clear accountability frameworks.

Data privacy and regulatory compliance present further challenges. AI thrives on vast data sets, but regulations like GDPR demand stringent controls over how personal data is collected and used. Cybersecurity, bias, and ethical concerns about decision-making transparency add yet more layers of complexity.

Innovation as a creator, not a destroyer

To see the future clearly, we must look to the past. Fears about technology wiping out jobs are not new – they surfaced with the advent of electricity, the steam engine and even the internet. Yet time and again, innovation has created more opportunities than it destroyed.

The internet, for example, may have displaced some traditional roles, but research in France showed that it created 2.4 new jobs for everyone it eliminated. The light bulb did not simply replace candles; it enabled factories to run 24/7 and fuelled the creation of the electrical industry.

Also Read: What travel tech can look like for the travel industry’s revival

Evidence of this pattern can be found across many sectors, particularly in how the internet has reshaped business over the past three decades—something that becomes clear through an empirical analysis of how the GICS classification, which underpins the MSCI and S&P indices, has evolved during this period.

AI is no different. The World Economic Forum estimates that in the next five years, 170 million jobs are projected to be created and 92 million jobs to be displaced due to labour market transformation – a net positive outcome. The real issue is how we adapt, how we re-skill, and how we design a transition that brings people along for the journey.

Adapting for a human-centred AI future

The travel and hospitality industry is already demonstrating how this adaptation is unfolding. We are entering the next industrial revolution—defined not by machines alone, but by human–AI collaboration. Airlines, regulatory bodies, and hotels are investing heavily in re-skilling programmes to prepare their workforce for the Agent Economy that is already upon us.

Under the EU AI Act and similar frameworks, human-in-the-loop (HITL) oversight is mandated for high-risk AI applications. Accordingly, AI is being implemented gradually, with human judgment remaining critical for high-stakes decisions. This hybrid approach ensures that automation augments rather than overrides human oversight.

Partnerships between travel companies and AI providers are accelerating innovation whilst spreading the cost and risk of adoption. Meanwhile, industry bodies like IATA are shaping shared standards that will be crucial for ensuring safety, interoperability, and public trust.

The way forward

AI is not a passing trend; it is an inflection point. The choice facing the travel and hospitality industry is whether to embrace this transformation with foresight and responsibility or to be caught off-guard by its pace.

Success will come from seeing AI not as a threat to the human element, but as a force that can enhance it—provided we address the tensions around workforce adaptation, safety, privacy, and ethics with clarity and intent.

The essence of travel has always been about connecting people and places. Used wisely, AI can make that connection richer, more seamless, and more sustainable ensuring that this technological revolution doesn’t just change how we move through the world but elevates the very experience of moving through it.

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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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Most people see space tech as nothing more than space rockets, as this happens to be the aspect of space tech that is widely covered in the media. But in this panel discussion at Echelon Singapore 2025, we learn that 80 per cent of the entire space tech ecosystem is actually built on multiple sectors, business models, and uses cases.

The panel also looked into terrestrial applications of satellite services which is considered as the actual “bread and butter” of the space tech ecosystem. Satellite services come essentially in two forms, either as geospatial data collector that can be used by a wide range of end users, or as satellite connectivity services which help bridge communications amongst communities and level the playing field worldwide.

Learn more about these differences and see where the opportunities lie.

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A new global survey reveals that a staggering 97 per cent of organisations cite significant challenges in transaction readiness, severely impeding their capacity to capitalise on strategic opportunities.

The findings, released in a report by the Diligent Institute in partnership with Wilson Sonsini, Oracle NetSuite, CFO Alliance, and the CFO Leadership Council, underscore widespread vulnerabilities in corporate systems globally.

Also Read: How M&A can supercharge your startup’s success

Despite prevailing economic and geopolitical uncertainties, nearly half of the surveyed executives (49 per cent) confirm that they still prioritise mergers and acquisitions (M&A) or strategic partnerships as key components of their growth strategy. However, the research indicates that most face significant hurdles when attempting to execute these deals effectively.

The report, which compiled responses from more than 200 global executives and governance professionals, focused on transaction readiness—the ability of organisations to efficiently navigate complex transactions such as M&A and capital deals.

Key obstacles and systemic gaps

The findings point to profound systemic gaps. Just 4 per cent of respondents reported that their Governance, Risk, and Compliance (GRC) and financial systems are fully integrated and ready for major transactions. This lack of integration leaves organisations exposed and slow to seize opportunities.

The survey identified several critical obstacles impeding readiness, with limited resources cited as the top challenge (56 per cent of respondents).

Other significant hurdles include economic uncertainty (35 per cent), insufficient board alignment around transactions (31 per cent), and a lack of experienced personnel (28 per cent).

Dottie Schindlinger, Executive Director of the Diligent Institute, warned that organisations must immediately address these deficiencies. “Organisations that fail to address their glaring transaction readiness gaps risk falling behind in the deal-making landscape,” she stated.

Also Read: M&A in Asia: A strategic roadmap for venture builders

Schindlinger stressed that addressing the issue requires “prioritisation at the board level, defining roles and processes, and enhancing data quality,” noting that “The transaction readiness gap is real and yet entirely addressable”.

A cautious approach to deals

In response to market volatility and challenges, many organisations have adopted a more cautious and measured approach to M&A. Actions taken by respondents include delaying deals (49 per cent), enhancing due diligence processes (40 per cent), and adjusting financial modelling (46 per cent) due to economic uncertainty. These actions reflect broader global trends showing decreased deal activity and increased scrutiny of potential investments.

Rich Mullen, Partner in Wilson Sonsini’s M&A Practice, highlighted the strategic imperative for leaders. “The volatile economic landscape and rapid market shifts requires not only operational efficiency but also strategic legal planning and risk management.”

He emphasised that now is a “critical moment for leaders to understand how top-performing organisations are preparing for major deals, enabling them to transition from episodic preparation to an ‘always on’ business discipline”.

Limited tech adoption in transactions

Of particular relevance to the technology sector, the survey revealed that the adoption of artificial intelligence (AI) in transaction processes remains minimal. Only 5 per cent of respondents currently use AI-powered evaluations or data collection.

However, interest in the technology is growing. Organisations are beginning to explore leveraging AI-powered tools to enhance strategic analysis, compliance, and due diligence, indicating a likely future shift toward more sophisticated transaction management practices.

Also Read: ‘M&A process in SEA is stuck in the dark age’: say match.asia co-founders

The survey was conducted among 233 global executives from 25 July 2025 to 1 September 2025. While 56 per cent of respondents were based in North America and 15 per cent in Europe, the survey included representation from the Asia-Pacific region (12 per cent).

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AnyMind Group, a Tokyo-listed BPaaS company, has unveiled its Singapore Digital Landscape 2025 report. The report offers a deep dive into how consumers in the city-state are interacting with digital content, advertising formats, and e-commerce platforms. It reveals a digital ecosystem where traditional marketing funnels no longer hold, and consumer behaviour is increasingly shaped by trust, timing, and high-impact formats.

Based on proprietary data from AnyMind’s platforms (AnyTag, AnyDigital, POKKT, and AnyX) and a survey of 1,255 consumers across the region, the study finds Singaporean audiences are significantly more responsive to influencer-driven content, video advertising, and in-game marketing than their regional counterparts.

The data reveals that Singaporeans are 62 per cent more likely to respond to influencer-sponsored content than the regional average. Short-form videos led by influencers outperform static or long-form formats, with 49 per cent greater engagement rates. Interactive ads and in-game placements also perform strongly, with 45 per cent and 32 per cent higher engagement, respectively.

The report underscores a fundamental shift in how Singaporeans move through the marketing funnel. Rather than following a linear path from awareness to purchase, consumers today operate in what AnyMind describes as an “orbital” journey.

Also Read: How Indonesian e-commerce players are attracting lower-tier customers?

Search and word-of-mouth remain the most effective channels for conversion in Singapore, signalling a dual emphasis on credibility and discovery. However, for consumers in the consideration phase, product demo videos and tutorials are particularly effective, highlighting the role of educational content in driving intent.

Notably, the report notes that the optimal timing for ad placement is three days before a consumer makes a purchase, emphasising the importance of strategic planning in media spend.

Toh Yi Hui, Country Manager for Singapore at AnyMind Group, noted: “Fragmented touchpoints, rising content expectations, and smarter consumers mean the old playbook no longer applies. There is a need to focus on building continuous, trust-based relationships.”

While the spotlight here is on Singapore, the report is part of a broader regional series covering Indonesia, Malaysia, the Philippines, Thailand, Vietnam, India, and the Middle East.

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Image Credit: Mike Enerio on Unsplash

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Disputes between co-founders in Southeast Asia are more frequent (and more game-changing) than many recognise. A misalignment at the top can derail a venture faster than shifting market forces.

Nadiem Makarim, co-founder of Gojek, stepped away from day-to-day operations in 2019 to join Indonesia’s cabinet, but not before navigating early team disruptions. Gojek’s leadership pipeline was fluid, with multiple co-founders departing as visions diverged. While the company soared, the churn stunned the ecosystem and slowed early momentum.

The perils of casual commitment

In Ho Chi Minh City, a promising retail-tech startup faltered when its technical co-founder quietly accepted a full-time corporate position six months into operations, leaving the team shorthanded just as investors were closing in. The lost momentum spooked backers and nearly sank the venture.

Similarly, Grab, Southeast Asia’s ride-hailing behemoth, began with two Harvard classmates: Anthony Tan and Hooi Ling Tan. Industry whispers suggest a third co-founder was phased out before Grab gained traction, likely due to cultural and strategic misalignments. Though rarely mentioned publicly, this episode speaks volumes about why early alignment matters.

Also Read: The Founder’s blind spot: Lessons in money management

Recognising red flags early

Startups amplify underlying issues. A tentative partner can sustain until traction arrives, then crack under the pressure of growth and expectations. Gojek’s early leadership churn, for instance, introduced delays in product focus at a critical time.

Southeast Asia’s unique pressures

Structural and cultural contexts in Southeast Asia intensify founder conflicts. Corporate frameworks are still maturing, and governance mechanisms like shareholder agreements are often seen as optional, especially in earlier markets like Thailand.

Cultural norms further complicate matters. As one Malaysian founder candidly remarked, “We don’t want to lose face by saying no early. But the bill always comes due.” These reticences suppress essential early conversations, leaving relationships brittle once stress arrives.

When founders depart but don’t derail

A departing co-founder need not kill a company. Carousell, the classifieds unicorn from Singapore, leaned on rapid formalisation—vesting schedules, clear roles, investor oversight—to reset and thrive despite early tensions.

PatSnap, an IP-tech unicorn, handled leadership changes by moving a co-founder into a board role, enabling continuity and preserving relationships.

By contrast, a Singapore venture launched in 2022 as a DeFi-inspired fundraising platform became a cautionary tale. It promised to democratise capital through blockchain deal flows, but leadership rifts, strategic mismanagement and serious lapses in oversight stalled progress. By mid-2025 it was gazetted for striking off, leaving staff in limbo and investors disillusioned. As one regional backer put it: “The market doesn’t forgive chaos at the top, especially when disruption turns into disappointment.”

Also Read: Why Soul Ventures Founder Warren Hui seeks founders with a vision “so big it seems impossible”

Launch solo to scale clean

Some founders are now choosing to launch alone first. A Vietnamese edutech entrepreneur reflected: “It’s easier to hire leaders than to unwind a broken marriage.” She built traction solo and only brought on a COO after validating her model, a strategy rooted in caution but buoyed by clarity.

Investors recognise the stakes

Investors are starting to demand more from founders. Conflict-resolution workshops and mediation clauses are showing up in term sheets. The ecosystem may be maturing, but founders must own the process. As a Thai startup mentor put it: “Your co-founders aren’t just colleagues; they are your company. Choosing the wrong one can be more dangerous than choosing the wrong market.”

Reality check

A founder’s exit doesn’t spell disaster: many companies survive and thrive after such transitions. But letting a misaligned founder linger can poison culture, fracture trust, and derail progress.

Southeast Asia’s opportunities are vast, from Singapore’s fintech boom to Vietnam’s rising e-commerce market. Yet these markets demand one truth: founding teams must be grounded in unshakeable trust. Strategy can adapt. Markets evolve. But people—your co-founders—must be the constant you can count on.

Because in the end, people are the company.

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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.

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

Image courtesy of the author.

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At a glance: In a wide-ranging conversation with CNBC TV anchor and moderator Amanda Drury on the first day of the GITEX Global 2025 on Monday, H.E. Omar Sultan Al Olama–the UAE Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications–outlined how the country is operationalising AI across government, competing globally for talent, and confronting risks from energy use to deepfakes.

Below are the most important takeaways for founders, investors, and policy watchers across Asia.

1) Talent is the “oil” of the digital economy

Al Olama was blunt: people are the growth engine. The UAE’s Green and Golden Visa schemes are designed to simplify relocation for high-skilled builders. At the same time, the country continues to seed domestic talent through MBZUAI (Mohamed bin Zayed University of Artificial Intelligence) with funded master’s and PhD tracks. The minister framed this as a long game started years ago, citing early national moves on AI policy and ethics. He added that the aim is to be a true testbed where global technologists can build and scale.

Also Read: Talents remain an issue in AI proliferation, but here are 6 steps that businesses can do to tackle it

“You can have the best strategy, but without the right capacity and talent, you won’t grow,” he said.

2) Government is a live reference customer for AI

Rather than treating AI as a helpline or chatbot veneer, the UAE is embedding it inside transactional workflows:

• Trademark screening: Entrepreneurs can upload a proposed mark and receive an AI similarity check against the national database in ~20 seconds–reducing review cycles and the risk of costly disputes later.
• National economic register: By aggregating registries, the state can surface investment intelligence–e.g., where a hospital is most needed based on bed density and proximity, or which districts have room for more hotel keys–so investors choose locations with real-time demand signals.

The message for startups is to build AI that removes latency from public services and investment decisions. The government will use it if it saves citizens time or de-risks business formation.

3) A bridge between East and West by design

The minister repeatedly returned to a single metaphor: the UAE “builds bridges, not walls.” Practically, that means:

• Open posture to foreign capital and alliances. The country positions itself as a neutral connector for companies, funds, and research consortia from multiple regions.
• Physical connectivity as strategy. Aviation routes and logistics are seen as core to idea flow and deal flow; more flights equal more founders, partners, and capital in the ecosystem.

For Singapore (and SEA-based startups), this translates to an easier on-ramp into Middle Eastern markets and a hub for cross-border pilots.

4) Sustainability is a first-order constraint for AI scale

The minister stressed that AI infrastructure planning cannot ignore energy mix and supply chains. Data centres and model training demand vast, predictable power; the UAE is pushing sustainability targets (including sustainable aviation fuel commitments around COP convenings) and wants partners who can co-design greener AI stacks. Read: if you’re building AI infra or heavy inference services, your energy story matters.

Also Read: Why sustainability will be the biggest competitive advantage for startups in 2025

5) Leadership must become “future-focused” and “solution-focused”

When asked how to prepare leaders for an AI-saturated economy, the minister offered a reframing. Traditional “problem-solving” is commoditised; AI can draft 80-page strategies or propose options in minutes. What differentiates executives now is the ability to:

• Anticipate: see around corners and allocate capital to the next curve.
• Synthesise and decide: choose among AI-generated options, own the why, and move.

That shift from problem-solving to solution orientation is the competency he wants to see across public and private leadership tracks.

6) Jobs: history suggests transformation, not erasure

Pushed on fears that AI will hollow out employment, Al Olama invoked previous industrial revolutions: mechanised farming and factory automation destroyed some roles but created productivity and entirely new categories of work. The task now is to double down on reskilling and move people up the value chain as tools compress grunt work from days to minutes.

7) Deepfakes are here; defence must be built in

The minister addressed circulating scam videos using his likeness to push fraudulent investments: they’re fake, and a warning. He called for detection tech, identity safeguards, and ecosystem-level cybersecurity to protect officials and citizens alike. Startups working on provenance, watermarking, voice/face authentication, and anomaly detection will find a receptive market.

8) What this means for founders and investors (the e27 take)

• GovTech is hot if it saves time. The UAE is actively procuring AI that accelerates licensing, IP, permits, and investment siting. Bring measurable cycle-time or risk-reduction wins.
• Talent mobility is real. With long-term visas and a founder-friendly sandbox, it’s easier to build teams that straddle SEA and the Gulf.
• Infra + energy is a differentiator. If your AI business leans on heavy compute, show energy efficiency, renewables integration, or model-size pragmatism.
• Trust tech is underserved. Deepfake defence, KYC/AML with biometric robustness, and content authenticity are pressing pains with policy tailwinds.

The bottom line

The UAE’s AI strategy is less about splashy declarations and more about operational wins that compound: faster company formation, smarter capital allocation, and a magnet for global builders.

For Singapore and Southeast Asia’s startup community, the signal is clear: if you can deliver AI that augments judgment, compresses time, and respects sustainability and security constraints, the UAE wants you to cross the bridge, and build on it.

The post “Build bridges, not walls”: Inside the UAE’s Operating System for AI at scale appeared first on e27.

The Indian Ocean trade arc is evolving. New logistics models emerge where drones and airships bridge gaps left by limited ground infrastructure. These low-altitude economy (LAE) systems are more than delivery tools—they are potential foundations for trade, finance, and services.

This post and analysis are inspired by the September Nairobi Meeting, where Mr Frank Zhang from China’s AI Universe Association introduced the concept and implementation of the LAE. We explore three candidate hubs—Nairobi, Madagascar, and Sri Lanka—and outline why each matters, how they compare, and what sequence of investment makes sense. This assessment provides a quick download on the vast potential of LAE in the Indian Ocean region.

Drone logistics in Kenya: Nairobi’s low-altitude economy advantage

Kenya leads in setting up the rules, testbeds, and partnerships needed to scale drone logistics.

• Unmanned Aerial Systems (UAS) regulations: The Kenya Civil Aviation Authority enforces active rules and updated standards. In 2025, the Konza Technopolis National Drone Corridor launched Africa’s first operational unmanned traffic management (UTM) system for beyond-visual-line-of-sight flights.
• Operational pilots: Kenya has ongoing drone delivery projects for medical supplies through county pilots, Kenya Flying Labs, and Zipline’s network. These demonstrate demand and set frameworks for expansion.
• Enabling infrastructure: Electricity coverage is approximately 76 per cent and continues to improve. Nairobi’s digital backbone—the “Silicon Savannah”—supports UTM software, fleet data, and e-commerce integration.
• Public–private partnerships (PPP): Konza’s corridor serves as a PPP platform that brings together regulators, governments, and private vendors.

Nairobi is the fastest path to operations for investors with constrained budgets. Expansion should focus on county corridors, integrated e-commerce and health supply chains, and regulatory sandboxes for new payload types.

Airship logistics in Madagascar: Unlocking remote access with flying whales

Madagascar positions itself differently. Instead of scaling mass-market drones, it focuses on heavy-lift airship cargo.

• Heavy-lift airships: In 2025, Madagascar signed a strategic partnership with Flying Whales to deploy the LCA60T, a 200-meter airship capable of carrying 60 tons. Safran provides power-train systems, validating technical readiness.
• Regulatory moves: The Aviation Civile de Madagascar formalised drone guidance in 2025, signalling intent to regulate unmanned operations.
• Infrastructure constraints: Internet penetration was only about 20 per cent in 2023, and electricity access remains low. Satellite and mesh networks are required to enable command-and-control links.
• Market fit: Airships suit mining, forestry, and humanitarian corridors where demand density is thin but access is critical.
• PPP platform: The Flying Whales deal is state-backed and designed to anchor a logistics hub around airship operations.

Madagascar is not aiming for large-scale consumer drone delivery. Its comparative advantage lies in airship corridors that unlock stranded cargo and humanitarian supplies.

Also Read: Forget China and the US–Japan is the true powerhouse of mobile game spending

Sri Lanka’s Port City Colombo: Building a drone and finance hub

Sri Lanka combines logistics and finance ambitions. Its location and new infrastructure projects provide long-term hub potential.

• Regulatory framework: The Civil Aviation Authority of Sri Lanka maintains UAS rules, though procedures are stricter than Kenya’s sandbox model.
• Strategic location: Colombo lies on East–West shipping and air routes, serving South Asia, Africa, and Southeast Asia.
• Port City Colombo special economic zone (SEZ): A new foreign-currency zone is being built to attract finance, arbitration, and services, creating a foundation for logistics-finance convergence.
• Digital and human capital: Internet penetration was about 67 per cent in 2023, supporting UAV operations and fintech services.
• Macro recovery: Stabilisation under the IMF program has restored investor confidence, enabling lower-cost financing.

Sri Lanka is not the fastest to deploy drones, but it offers the broadest reach and strongest path to a Singapore/Dubai-style finance-logistics hub.

Kenya vs Madagascar vs Sri Lanka: Best Indian Ocean drone logistics hubs

Dimension	Nairobi (Kenya)	Madagascar	Sri Lanka (Port City Colombo)
UAS rules	Kenyan Civil Aviation Authority (KCAA) standards updated in 2024	Madagascar Civil Aviation Authority (ACM) rules formalised in 2025	Civil Aviation Authority of Sri Lanka (CAASL) rules in 2025; stricter processes
UTM corridors	Operational Beyond Visual Line of Sight (BVLOS) corridor at Konza	None; airships instead	No national UTM corridor
Demonstrated use cases	Medical delivery, Zipline, e-commerce	Heavy-lift airships for mining/aid	SEZ finance, UAV possible under CAASL
Infrastructure	Rising electrification, strong tech base	Low electrification, low internet	Higher internet, strong port/airport
Trade signal (LPI 2023)	Mid-pack globally	Lower tier	Around median, timeliness improving
PPP momentum	KNDC corridor PPP	Flying Whales JV	Port City Colombo SEZ, port expansion

Pathways to growth

• Nairobi: Consolidate drone corridors, expand county networks, add insurance and clearing desks anchored to UTM systems.
• Madagascar: Stand up the LCA60T operator, connect mining and forestry corridors, add UAV last-mile nodes, and integrate finance products.
• Sri Lanka: Pilot near-port UAV and eVTOL logistics, integrate port and airport data, and channel trade finance into Port City Colombo.

Together, they can form a tri-node system: Nairobi as the operational centre, Madagascar as the heavy-lift spoke, and Colombo as the financial hub.

Also Read: Global markets react to US-China trade talks: Financial markets respond with cautious optimism

Risks and mitigation

Regulation and security remain the foremost concerns in building low-altitude economies. Here, the Specific Operations Risk Assessment (SORA) framework provides a standardised method for evaluating risks and assigning mitigation measures.

By applying SORA, policymakers and operators can structure sandbox corridors, classify ground and air risks, and assign appropriate levels of operational assurance. This creates a transparent pathway for authorisation while reducing uncertainty for investors and regulators alike.

Connectivity gaps pose another systemic challenge, particularly in under-served geographies such as Madagascar. Power reliability and command-and-control (C2) links are often fragile. To address these, solar-plus-storage systems coupled with satellite communication links can help bridge the infrastructure deficit. These measures ensure continuous operations across critical low-altitude corridors, even in environments where traditional grid or terrestrial networks are weak.

Investment approaches

Investment strategies differ across Kenya, Sri Lanka, and Madagascar, reflecting their stage of ecosystem readiness and the capital appetite of investors. For those with limited capital, Nairobi presents a low-risk entry point. Proven use cases in logistics and agriculture, combined with a relatively fast payback period, make Kenya a strong testing ground for commercial pilots under a SORA-compliant regime.

For a full-scale capital plan, Sri Lanka offers the most compelling case. The convergence of logistics and financial infrastructure within Port City Colombo’s SEZ provides the backbone for scaling. Here, investors can align with SORA-based operational authorisations while tapping into the city’s role as a regional financial hub, amplifying both scale and capital recycling.

An adjacency strategy applies in Madagascar, where heavy-lift airship corridors are emerging as a niche opportunity. While less commercially mature, these projects can be supported through blended finance, leveraging multilateral, public, and private capital to de-risk early infrastructure investments. By embedding SORA methodologies into corridor design, Madagascar can demonstrate operational safety even in frontier markets.

At the macro level, Sri Lanka remains vulnerable to foreign-exchange volatility and broader debt pressures. These risks are significant for large-scale projects in Colombo’s SEZ. Financial structuring offers partial mitigation: foreign-currency accounts and multilateral guarantees help hedge volatility, providing greater certainty for long-term investors. When combined with the predictability of SORA-based regulatory processes, such measures strengthen the investment case despite systemic headwinds.

Conclusion

Nairobi provides the quickest operational entry point. Sri Lanka offers the broadest long-run reach as a combined logistics-finance hub. Madagascar delivers targeted impact through airship corridors in resource-heavy and humanitarian contexts.

This tri-node architecture—Nairobi for operations, Madagascar for heavy-lift access, and Colombo for finance—can seed a distributed, inclusive logistics network across the Indian Ocean.

A comprehensive analysis is submitted to the Journal of ISEA-SR21.

This article was co-authored with Dr. Alex Lin.

You can also find me on my podcast and newsletter, where I share regular insights on geopolitics and leadership.

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Since 2016, I’ve led AI initiatives across multiple tech giants and learned an uncomfortable truth: AI projects aren’t just another technology implementation. They’re fundamentally different beasts that demand a completely new playbook. The challenge isn’t technical—it’s cultural and organisational.

The expectation-execution reality check

You’ve probably seen this meme format:

• Who are we? CEOs!
• What do we want? AI!
• AI to do what? We don’t know yet!
• When do we want it? NOW!

Behind the humour lies a painful reality: too many teams are tasked with finding AI use cases after leadership has already decided AI is the answer. This backward approach—solution in search of a problem—explains why so many AI initiatives deliver limited ROI.

The AI-IT culture mismatch

Here’s another uncomfortable truth: traditional IT departments and AI initiatives often clash at a fundamental level. IT excels at stability, predictability, and risk mitigation. AI thrives on experimentation, iteration, and controlled learning from setbacks.

This isn’t a criticism—it’s a recognition that effective AI value extraction requires new organisational structures. The highest-impact implementations create cross-functional teams that blend technical expertise with deep domain knowledge, giving them the autonomy to iterate rapidly and course-correct.

Also Read: AI dreams, crypto magic and shutdown realities: The contradictions fuelling today’s market rally

The leadership paradox

There’s a cruel irony in many AI initiatives: the executives demanding “AI transformation NOW!” are often the furthest from the daily operational inefficiencies that AI could actually provide the best value.

Leadership sees the big picture but misses the granular friction points where AI delivers real benefit. Meanwhile, frontline employees understand where the most tedious and boring task is, but lack the authority or knowledge to implement solutions.

The answer isn’t top-down mandates or bottom-up rebellion—it’s bridging this gap through collaborative problem identification and solution design.

Beyond the accuracy obsession

Here’s another myth about model accuracy. The truth is, no matter how “cutting edge” the tool or model is, you would only know how beneficial it is after you test it against your data and scenarios.

Think of AI models like job candidates: a top performer at one company might struggle at another due to cultural fit, specific requirements, and operational context. Other company’s 95 per cent accurate model means nothing if it can’t handle your cases or integrate with your existing systems.

Simple AI got higher chance to win

Some of my highest-impact AI projects have been embarrassingly simple: a targeted document classifier, or a basic predictive model. No sophisticated design, no fancy models. Just well-scoped solutions to clearly defined problems.

The sexiest AI isn’t always the most valuable. When you have a hammer-and-nail problem, don’t reach for a Swiss Army knife just because it has more features.

Also Read: Trust, tech, and transformation: How SMEs in Southeast Asia are using AI to grow smarter

AI is fundamentally about people

Here’s what ties all these challenges together: We tend to talk about AI as a technological marvel—but isn’t AI’s core mission to emulate human intelligence? What makes the difference in implementation is not the shiniest model architecture or the latest algorithm—it’s a deep understanding of humans: their workflows, pain points, and how they make decisions.

Innovation is a team sport

The most inspiring AI transformations I’ve witnessed didn’t happen at companies known for cutting-edge technology. They happened at organisations that cultivated genuine collaboration between technical teams and domain experts, where innovation emerged from inclusive problem-solving rather than top-down technology mandates.

These companies understood that AI doesn’t transform organisations—empowered teams do.

The path forward

Effective AI value extraction requires a fundamental shift in approach, here’re some tips:

• Engage the front lines. Your best AI use cases will come from people closest to operational pain points.
• Build cross-functional teams. Combine technical capability with domain expertise and decision-making authority.
• Create a learning and sharing culture. AI is not your regular tech project—everyone has the responsibility to learn, try, and experiment. The best way to build consensus and understanding is by sharing knowledge and learning together.
• Start with problems, not solutions. Stop asking vendors “what are the use cases.” Identify specific inefficiencies, discuss the ideal state, then evaluate different tools or engage AI consultants to assess feasibility.

AI is fundamentally reshaping how we approach problems and democratising capabilities that were once exclusive to specialists. But here’s the real transformation: AI success is no longer confined to IT departments or tech teams. It requires every person in your organisation to become curious, collaborative, and willing to experiment.

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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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